Reflection – Cooperative Strategy

Perkins

4 months ago

Reflection – Cooperative Strategy

Cooperative strategy implies collaborations and partnerships in attaining a common objective. More often than not, companies cooperate in creative value in instances whereby a single firm would not achieve value creation aimed at satisfying customers.
Notably, the cooperative strategy is manifested through a strategic alliance that refers to the combination of resources by companies in attaining a competitive advantage. The strategic alliance is aimed at leveraging collaborating companies in the market by optimizing resources.
A joint venture is a form of a strategic alliance that entails the establishment of a legal firm by two or more firms sharing resources. This structure is aimed at enhancing a firm’s competitiveness in industries featuring intensive industry rivalry.
An equity strategic alliance entails two or more firms establishing a different company, which is their affiliate, by combining resources. Notably, this structure is prevalent in China’s FDIs.
Non-equity strategic alliance refers to the creation of a competitive niche when two or more companies combine and share resources. This structure is based on a contractual relationship and does not involve the establishment of a separate firm.
Slow cycle markets are stable markets that promote the longevity of a company’s competitive niche in the industry. Notably, these markets are being phased out due to the privatization of sectors and rapid technological advancements.
Fast-cycle markets refer to unpredictable, highly dynamic, and complex markets. These markets feature the continual creation of competitive advantages due to their phasing out within a short period.
Uncertainty-reducing strategy refers to a technique that focuses on minimizing a company’s business risks in the market. This strategy is vital in uncertain and dynamic markets that feature high risks characterized by potentially high returns.
Competition reducing strategy refers to a tactic executed in lowering competition in the market. This strategy is manifested through collusive and explicit strategies.
Diversifying strategic alliance refers to a type of strategy whereby businesses share resources in facilitating the geographic aspect of product diversification. More often than not, this approach is executed by firms venturing into new markets and is preferred as it lowers business risks encountered by one firm.

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Question

Reflection – Cooperative Strategy

This week, the readings/videos focused on the topic of Cooperative Strategy. For this assignment, I would like you to reflect on the literature and identify 10 key points that you took away from the assignments. For each of the key points, you are to identify the point and provide 2-3 sentences explaining the point. Please number each of the 10 points.