Mini Case 3 chapter 9
Failing to Obtain Desired Levels of Success with Cooperative Strategies
As attractive and promising as a strategic alliance may appear, it is always fraught with challenges and often subject to fail. Two examples—the terminated Redbox-Verizon alliance as well as the ongoing MillerCoors alliance—both demonstrate how vital it is for a partnership to result in both firms’ ability to create unique value for customers. First Solar’s failed alliance with SunPower also illustrates the need for careful planning and implementation of a strategic alliance.
The Mini-Case profiles the cooperative strategies (strategic alliances) that have been established by several automobile manufacturers. Cooperative strategies allow firms to combine resources and capabilities that contribute to successful performance. More specifically, these are resources and capabilities that neither partner possesses individually. Identify other examples of firms that utilize cooperative strategies and to explain how these cooperative strategies contribute to the success of both partners.
Case Discussion Questions
Your minimum writing content for all four questions must be at least 200 words.
2 points will be deducted if not provided.
1. What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint ventures?
2. What role does competition from rivals play in the eventual success of cooperative strategies? Please explain.
3. What costs are incurred in developing strategic alliances? How can these costs be managed?
4. Should cost minimization or opportunity maximization be the primary goal of a cooperative strategy? Can both be achieved simultaneously? Why or why not?
