Chapter 13-1

International Corporate Cooperation

 Strategic Alliances
Cross-licensing of proprietary technology
Sharing of production facilities
Co-funding of research projects
 Marketing of each other’s products using
existing distribution networks
 Joint Venture (JV)
Firms Share Management
One Firm Takes Responsibility
Independent Managers Are Hired
Chapter 13-2
International Corporate Cooperation
(Cont.)

Strategic Purpose Scope Duration

Alliance

Joint Broader Broader Longer

Ventures

Non-Joint Narrower Narrower Shorter

Ventures

Chapter 13-3
Benefits of Strategic Alliances

Chapter 13-4
Ease of Market Entry

 Overcome Entrenched Competition

 Deal with Government Regulations
 Get Economies of Scale and Scope
 Manage Costs of Doing Business

Chapter 13-5
Shared Risk

New Market/New Product

Strategic Alliances

Reduce/Control Risks

Chapter 13-6
Shared Knowledge and Expertise

Strategic Alliances

Gain Knowledge and Expertise

Chapter 13-7
Synergy and Competitive Advantage

 Market Entry
 Risk Sharing
 Learning Potential

Chapter 13-8
Scope of Strategic Alliances

Chapter 13-9
Comprehensive Alliances

R&D

Design

Comprehensive
Production
Alliances

Marketing

Distribution

Chapter 13-10
Functional Alliances

 Production Alliances
 Marketing Alliances
 Financial Alliances
 R&D Alliances

Chapter 13-11
Implementation of Strategic Alliances

 Selection of Partners
 Form of Ownership
 Joint Management Considerations

Chapter 13-12
Selection of Partners

 Compatibility Between Partners

 Nature of Products and Services
 Relative Safeness of the Alliance
 Learning Potential of the Alliance

Chapter 13-13
Forms of Ownership

Corporate Limited
Form Partnership

Chapter 13-14
Forms of Ownership:
Public-Private Venture

OPPORTUNITIES CHALLENGES

New Market Investment Lost

Government Assets Seized
Support
Operation Closed
 Reduced
Competition

Chapter 13-15
Joint Management Considerations

Chapter 13-16
Pitfalls of Strategic Alliances

Chapter 13-17