cooperative strategies

Running Head : Cooperative strategies

Cooperative strategies

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Cooperative strategies

Cooperative strategy is a strategy in which two or more than two firms work together to achieve common goals . These new cooperative strategies are the outgrowth of the push toward globalization during last decade (Hicks , 1997 . It occurs when partnership occurs between firms where they share their resources , capabilities , and core competence to pursue common benefits . Cooperative strategy is the attempt by organizations to realize their objective through cooperation with other organizations rather than in

competition with them (Child , 2005 . Cooperative Strategy is a means to achieving fundamental strategic objectives such as a strong market position , significant knowledge acquisition , and major cost reductions . Cooperative strategies include the following

1 ) Non-Equity Strategic Alliance

2 ) Equity Strategic Alliance

3 ) Joint Venture

Joint Venture

It is the one in which two or more firms create a legally independent company to share some of their resources capabilities to develop a competitive advantage . Example includes Domtar Cascades formed Norampac (Hicks , 1997

Equity Strategic Alliance

Partnership where the two partners do not own equal shares . For instance , Alstream Inc . Microcell NR Communications (Lorange , 2002

Non-Equity Strategic Alliance

Contracts are given to supply , produce , or distribute a firm 's goods or services . The two basic approaches for managing cooperative strategies are cost-minimization and value-creation maximization

Cost-minimization

Effective partner contracts , as well as , capabilities to monitor such contracts are created by the development of capabilities . In specific idea of such development includes in such...