· Develop an understanding of cooperative strategies
· Discuss strategic alliances
· Understand different types of cooperation
· Explain risks of cooperative strategies
· Alliances
· “voluntary arrangements between firms involving exchange, sharing, or codevelopment of products, technologies, or services.” (Gulati 1998) • Access to partner resources and capabilities
· Equity alliance
· Existing companies take ownership stakes in each other and work jointly (alliance)
· Creating of a new company jointly owned by the venture partners (joint venture)
· Each partner contributes resources or capabilities
· Non-equity alliance (contractual)
· Licensing
· Distribution
· Long term contracts (but not all long term contracts are alliances)
· Outsourcing
· Franchising
‘Informal’ cooperation
· Procter & Gamble Connect & Develop
Licensing
technologies
from other
companies
E.g. technologies for
the Swiffer duster and
Crest Whitestrips
Advanced Seal have
been licensed from
external partners
E.g. Cotton Buds, Inc
was granted the license
to produce, market
and distribute single
–
use
packets of Tide detergent