GMS 520 Chapter Notes - Chapter 5: High Tech, Pharmaceutical Industry
25 Mar 2016
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Partnerships between 2+ irms, decide if can add resources for mutual goals ($, tech, managerial, also distinct competitive advantages) Alliances called cooperative strategies help strategies forward faster than if alone. Because of need to respond to globalization of markets, opportunities from tech but rushing = failures. 3 kinds of alliances: joint ventures, equity strategic alliances, non-equity strategic alliances. If cross-border, need local people to counteract political risk + use local advantages (knowledge + contacts) Re-trenching/demerging= cancelling merger/acquisition/jv because of global economic downturn: joint ventures. New independent created/owned by 2+ parent companies- may be majority/minority or equal split. If so, irm shares proits, costs, risk with local/global partner. Could bring dif approaches, way of thinking, results in faster devt and increased production capacity, can share costs w/o renouncing independence: equity strategic alliances. Sometimes jv/ijv = desperation: non-equity strategic alliances. Often with supplier/distributor, or for marketing/info sharing: global strategic alliances.
