MGT 3659 Lecture Notes - Lecture 9: Waymo, Lyft, Hubris
Document Summary
Chapter 9 corporate strategy: strategic alliances, mergers, and acquisitions. A private startup worth only 1/10 of uber. Why do firms enter strategic alliances: strengthen competitive position. Change industry structure, influence standards: enter new markets. Product, service, or geographic markets: hedge against uncertainty. Staged sequentially over time: access critical complementary assets. Helps complete the value chain: learn new capabilities. Learning races: to exit the alliance quickly. Jointly investing in nevada"s lithium-ion battery plant. Strategic alliances can be governed by: non-equity alliances. Partnerships based on contracts: equity alliances. One partner takes partial ownership in the other: joint ventures. Jointly owned by two or more companies. When the target firm does not wish to be acquired. Three main benefits: reduction in competitive intensity. Changes underlying industry structure in favor of surviving firms: lower costs. Managers convince themselves of their superior skills. They see themselves as exceptions to the rule. The grass is greener on the other side .
