BU491 Chapter Notes - Chapter 6: Nrg Energy, Spanair, Danone
Document Summary
Low level of interaction high level of interaction. Key motivations for strategic alliances: technology/knowledge exchange, global competition. Industry convergence: economies of scale, reduction of risk, alternative to merging. Difficult to compete individually due to shorter product life. Merging cycles, time pressure, and risk exposure: ge & nrg energy did joint venture to develop technologies, enabled financial resources and tech expertise, expand network of collaborations to speed innovation and commercialization. Competitiveness predicted to be between players through strategic partnerships (align to compete better with monopolies) Sometimes the only way to develop complex and interdisciplinary skills in the limited time frame. Shapes competition and reduces competitive intensity as industries overlap. Can pool resources and concentrate activities to learn things that cannot be achieved operating separately maximize efficiency. Enable partners to leverage specific strengths & capabilities. Result in mutual gains and save high cost of duplication. Countries that prevent foreign ownership - therefore turn to global integration as the option that creates effectiveness.
