BUSI 4609 Chapter Notes - Chapter 9: Trade Barrier, Linear Motor, Market Power
7 May 2018
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Chapter 9
1. cooperative strategy: work together to achieve shared objective
a. create value
b. favorable position
c. exceed cost of constructing value
2. strategic alliance
a. primary type of coop. strategy which combine resource to create
mutual CA
b. collaborative advantage: CA develop through coop. strategy
c. type
i. joint venture
ii. non equity strategic alliance
iii. equity strategic alliance
d. reason
i. slow
o gain access to restricted market
o establish franchise
o maintain market stability
ii. fast
o high development
o high market entry
o share risk
o overcome uncertainty
o maintain market leadership
iii. standard
o high market power
o high resource
o high economies of scale
o overcome trade barrier
3. business level strategy
a. complementary strategic alliance
i. combine partner asset to create new value
ii. vertical: outsourcing
iii. horizontal: need to increase trust
b. competition response alliance
i. join forcer to respond strategic action of other competitor
ii. expensive
iii. hard to reverse
iv. strategic, not tactical
c. uncertainty reducing
i. fast cycle
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