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Strategic Alliances & Joint Ventures: Prof. Arindam Mondal XLRI Jamshedpur
Strategic Alliances & Joint Ventures: Prof. Arindam Mondal XLRI Jamshedpur
Joint Ventures
Prof. Arindam Mondal
XLRI Jamshedpur
Cooperative Strategy
• Cooperative Strategy
➢ A strategy in which firms work together to achieve a
shared objective.
• Cooperating with other firms is a strategy that:
➢ Creates value for a customer.
➢ Reduces the cost of constructing customer value in
isolation.
➢ Establishes a favorable position relative to
competitors.
Strategic Alliance
• A primary type of cooperative strategy in which
firms combine some of their resources and
capabilities to create a mutual competitive
advantage.
➢ Involves the exchange and sharing of resources and
capabilities to co-develop or distribute goods and
services.
➢ Consistently pursuing ways to combine partners’
resources and capabilities to create value.
➢ Requires cooperative behavior from all partners.
➢ A competitive advantage developed through such
cooperation.
Strategic Alliance
Firm A Firm B
Resources Resources
Capabilities Capabilities
Core Competencies Core Competencies
Combined
Resources
Capabilities
Core Competencies