Cooperative Strategies Essay Example | Topics and Well Written Essays - 750 words

Cooperative Strategies - Essay subjecthttp//www.swlearning.com/management/hoskisson/cfa1e/powerpoint/ch10_lecture_light.pptCA designed to take advantage of market opportunities by combining partner firms assets in complementary ways to establish a refreshing value. These include distribution, supplier or outsourcing alliances where firms rely on upstream or downstream partners to build competitive advantage.It is formed between partners who agree to combine their resources and skills to create value in the same stage of the value chain. Focus is on long-term product phylogenesis and distribution opportunities. Partners may become competitors and requires a great deal of trust between them.It is used to turn off against risk and uncertainty and it is most noticed in fast-cycle markets. Alliance may be formed to geld the uncertainty associated with developing new product or technology standards.Allows a firm to expand into new product or market areas without completing a merger o r an acquisition, it also provides some of the electromotive force synergistic benefits of a merger or acquisition, but with less risk and greater levels of flexibility. Permits a scrutiny of whether a future merger between the partners would benefit both parties.The main purpose of Franchising is to spreads risks and uses resources, capabilities, and competencies without merging or acquiring another company. Contractual relationship concerning the franchise is developed between two parties, the franchisee and the franchisor, an alternative to act growth through mergers and acquisitions. http//academic.cengage.com/resource_uploads/downloads/0324316941_57293.pptDespite of providing benefits to the firms, cooperative strategies can be