GEB 3373 Lecture 48: lecture 48: ch13 pt 2
22 Nov 2016
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Scope: does alliance involve only one area of business, all facets (design, production, marketing, distribution), or somewhere in between. Degree of collaboration depends on goals/needs of each partner. The fewer areas involved in strategic alliance = the less complex is the integration of the two firms. Firms work together to perform multiple stages of process by which goods/ services brought to market. Broad in scope, so firms est. procedures for meshing areas like finance, prod. , mktg. As independent entity, jv can adopt procedures to suit its specific needs, rather than those of parents. By fully integrating efforts, firms can achieve greater synergy due to sheer size and amount of total resources. Two or more firms manufacture products or provide services in shared or common facility. May use facility one partner already owns. Two or more firms share marketing services/expertise. Usually, one partner introduces product/service into market where other partner already has presence.
