Sm Group Presentation 281115 Rev 2

7/25/2019 Sm Group Presentation 281115 Rev 2

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Strategic

ManagementChapter 9

CooperativeStrategy


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Presented by

6 MDB


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The Team


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Team Member ID

Khadijah Syarina MR131139

Lee Yan She, Charlene MR131152

Dr. Sudeah MR 131151Dr. !u"aneh#aran MR 1311$9

%irmalarubini!raba&aran

M'S 1$1(3$

Suria)umaran

*anaan

M'S 1$1(53

The Team


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Content1. Denition Cooperative Strategies!. Three Ma"or Types o# Strategic $%%iances

&. B'siness()eve% Cooperative Strategies

*. Corporate()eve% Cooperative Strategies+. The ,mportance o# Cross(Border Strategic

$%%iances as an ,nternationa% CooperativeStrategy

6. Cooperative Strategies- is/s


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cooperative

strategies ande0p%ain hy

rms 'secooperativestrategies


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Cooperative

StrategyStrategy inhich rms

or/ together

to achieve asharedob"ective

They competeg%oba%%y b't

may cooperate%oca%%y


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y 3irms 'se Cooperative Strategy

In+eneri"alry

Dii-ul+ +main+ainmar)e+/#er

C/era+i"e +ra+e&y

-an redu-emar)e+/#er+hru&hbe++ernrm 0

-m/e+i+in

Mu+ual0rbearan-e


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'aed nreur-e

baed "ie#

T-m/e+e,4rm needreur-e

'u+ +heydn+ ha"er may be0und in+her4rm

Cm/lemen+ary

reur-e

6ld $3.37 in %ianS+rn& in 8ur/e

6ld 157 in Renaul+S+rn& in ia

Same C8: ; Carl *hn


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S5'eeed in the midd%e7cooperate to estab%ishedeconomies o# sca%e

To create va%'e #or a c'stomerthat it %i/e%y co'%d not createnot itse%#

To create competitiveadvantage


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Dene anddisc'ss thethree ma"or

types o#

strategica%%iances


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Strategic $%%iances

,nvo%ves the e0change and

sharing o# reso'rces andcapabi%ities to co(deve%op ordistrib'te goods and services.

e5'ires cooperative behavior#rom a%% partners

$ primary type o# cooperative strategy inhich rms combine some o# their reso'rcesand capabi%ities to


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Strategic $%%iances Behavio'rs

80amp%eo#

cooperative behavior/non tocontrib'teto a%%iance

s'ccess

$ctive%yso%ving

prob%ems

Beingtr'stort

hy

Consistentp'rs'ingays tocombinepartnersreso'rces

andcapabi%itie

s to createva%'e.

Co%%aborative

:re%ationa%;

advantage

$competitiv

eadvantagedeve%opedthro'gh acooperativ

e strategy.


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Ma"or Types ent're

To or more rms create a %ega%%y independent company by sharing some o# theirreso'rces and capabi%ities.

85'ity strategic a%%iance

Partners ho on di?erent percentages o# e5'ity in a separate company they have#ormed.

@one5'ity strategic a%%ianceTo or more rms deve%op a contract'a% re%ationship to share some o# their 'ni5'ereso'rces and capabi%ities.

)icensing agreements

Distrib'tion agreements

S'pp%y contracts


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easons #or strategic a%%iances by mar/et typeMar)e+ Rean

Sl#Cy-le A ain access to a restricted mar/etA 8stab%ish a #ranchise in a ne mar/etA Maintain mar/et stabi%ity :e.g.7 estab%ishingstandards;


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@ame the

b'siness(%eve%cooperative

strategies anddescribe their'se 4


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'uineLe"elC/era+i"e S+ra+e&ie

>ertica% orionta%

Comp%ementaryStrategic $%%iances

Competition esponseStrategy

Encertainty ed'cingStrategy

Competition ed'cing

Strategy


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Cm/e+i+in Re/nellian-e

?hen4


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@n-er+ain+yRedu-in&

S+ra+e&yre ued +

hed&e a&ain+ri) and

un-er+ain+y.

Thee allian-eare m+

n+i-ed in 0a+-y-le mar)e+.

n allian-emay be

0rmed +redu-e +heun-er+ain+y

a-ia+ed#i+h

de"el/in&ne# /rdu-+

r +e-hnl&y+andard.

Ex: DaimlerAG of

Germany &Tesla


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Cm/e+i+inRedu-in& S+ra+e&y

!ur/e to avoiddestr'ctiveFe0cessiv

e competition

8A/li-i+ -lluinhen rms direct%y

negotiate prod'ctiono'tp't and pricing

agreements in orderto red'ce

competition :i%%ega%;.

Ta-i+ -lluinhen rms in an

ind'stry indirect%ycoordinate theirprod'ction and

pricing decisions byobserving other

rmGs actions andresponses.


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@ame the

b'siness(%eve%cooperative

strategies anddescribe their'se


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Corporate-Level Cooperative Strategy

Corporate(%eve% Strategies

e%p the rm diversi#y in terms o# Prod'cts o?ered to the mar/et The mar/ets it serves

e5'ire #eer reso'rce commitments. Permit greater He0ibi%ity in terms o# e?orts

to diversi#y partnersG operations.


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Diversifying Strategic Alliances

Di"eri0yin&S+ra+e&i- llian-e

$%%os a rm to e0pand into neprod'ct or mar/et areas itho'tcomp%eting a merger or anac5'isition.

Provides some o# the potentia%synergistic benets o# a merger orac5'isition7 b't ith %ess ris/ andgreater %eve%s o# He0ibi%ity.

Permits a test o# hether a#'t're merger beteen thepartners o'%d benet both

parties.


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Synergistic Strategic Alliances

Creates "oint economies o#scope beteen to ormore rms.

Creates synergy across

m'%tip%e #'nctions orm'%tip%e b'sinessesbeteen partner rms.


Syner&i+i-

S+ra+e&i- llian-e


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Franchising

Spreads ris/s and 'ses reso'rces7capabi%ities7 and competenciesitho't merging or ac5'iring anotherrm.

$ contract'a% re%ationship :#ranchise;is deve%oped beteen to parties7 the#ranchisee and the #ranchisor.

$n a%ternative to p'rs'ing groththro'gh mergers and ac5'isitions.


Syner&i+i-

S+ra+e&i- llian-e


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Disc'ss the 'se

o# corporate(%eve%cooperativestrategies in

diversied rms


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INTERNATIONAL COOPERATIVE STRATEGY

Cross(border Strategic $%%iance

In+erna+inal-/era+i"e

+ra+e&y

#hi-h 4rm#i+h

headBuar+erin dieren+

na+in-mbine me

0 +heirreur-e and-a/abili+ie +

-rea+e a-m/e+i+i"ead"an+a&e

Theeallian-e areme+ime

0rmedin+ead 0

mer&er and

a-Buii+in,#hi-h -an be

ri)ier

Crbrderallian-e -anbe -m/leAand hard +

mana&e


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I%T8R%TI:%L C::!8RTI=8STRT8*Y

?hy 0rm -rbrder +ra+e&i-allian-e$ rm may #orm cross(borderstrategic a%%iances to %everagecore competencies that are the

#o'ndation o# its domestic s'ccessto e0pand into internationa%

mar/ets.

M'%tinationa% corporationso'tper#orm rms that operate on%y

domestica%%y.

D'e to %imited domestic grothopport'nities7 rms %oo/ o'tsidetheir nationa% borders to e0pand

b'siness.

Some #oreign government po%iciesre5'ire investing rms to partner

ith a %oca% rm to enter theirmar/ets


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80p%aincooperative

strategies- ris/s


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Competitive is/s o# CooperativeStrategies

Partners mayact

opport'nistica%%y.

Partners maymisrepresentcompetencies

bro'ght tothe

partnership.

Partners #ai%to ma/e

committedreso'rcesand

capabi%itiesavai%ab%e to

otherpartners.


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Competitive is/s o# CooperativeStrategies


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Describe toapproaches

'sed to managecooperativestrategies


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Managing Cooperative Strategies

Toprimary

approaches

Costminimiati

on


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Managing CooperativeStrategies

CostMinimiation

Management

$pproach

ave#orma%

contractsith

partners.

Speci#yhostrategy is

to bemonitored

.

Speci#y

hopartner

behavio'ris to be

contro%%ed.

Set goa%sthat

minimiecosts andto preventopport'ni

sticbehavio'r

bypartners.


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Managing Cooperative

Strategies


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Than/ Jo'

Documents

Sm Group Presentation 281115 Rev 2