Today\u2019s learning objectives<\/p>\n
Develop an understanding of cooperative strategies<\/p>\n
Discuss strategic alliances<\/p>\n
Understand different types of cooperation<\/p>\n
Explain risks of cooperative strategies<\/p>\n
Strategic alliances<\/p>\n
Alliances<\/p>\n
\u201cvoluntary arrangements between firms involving exchange, sharing, or codevelopment of products, technologies, or services.\u201d (Gulati 1998) \u2022 Access to partner resources and capabilities<\/p>\n
Equity alliance<\/p>\n
Existing companies take ownership stakes in each other and work jointly (alliance)<\/p>\n
Creating of a new company jointly owned by the venture partners (joint venture)<\/p>\n
Each partner contributes resources or capabilities<\/p>\n
Non-equity alliance (contractual)<\/p>\n
Licensing<\/p>\n
Distribution<\/p>\n
Long term contracts (but not all long term contracts are alliances)<\/p>\n
Outsourcing<\/p>\n
Franchising<\/p>\n
\u2018Informal\u2019 cooperation<\/p>\n
Procter & Gamble Connect & Develop<\/p>\n
Licensing <\/p>\n
technologies <\/p>\n
from other <\/p>\n
companies<\/p>\n
E.g. technologies for <\/p>\n
the Swiffer duster and <\/p>\n
Crest Whitestrips <\/p>\n
Advanced Seal have <\/p>\n
been licensed from <\/p>\n
external partners<\/p>\n
E.g. Cotton Buds, Inc <\/p>\n
was granted the license<\/p>\n
to produce, market <\/p>\n
and distribute single<\/p>\n
–<\/p>\n
use <\/p>\n
packets of Tide detergent<\/p>\n
The idea<\/p>\n
\u2022<\/p>\n
Web platform where interested parties can submit technologies and browse for P&G technologies to licence <\/p>\n
\u2022<\/p>\n
Encompasses marketing models, packaging, engineering, business services, market research methods etc.<\/p>\n
Results<\/p>\n
\u2022<\/p>\n
Surpassed goal of creating 50% of P&G\u2019s innovations with outside partners (initially 15%)<\/p>\n
\u2022<\/p>\n
R&D productivity up with 85%, over 1000 active agreements<\/p>\n
Licensing P&G\u2019s <\/p>\n
unnecessary <\/p>\n
technologies <\/p>\n
to interested <\/p>\n
buyers<\/p>\n
Licensing <\/p>\n
technologies <\/p>\n
from other <\/p>\n
companies<\/p>\n
E.g. technologies for <\/p>\n
the Swiffer duster and <\/p>\n
Crest Whitestrips <\/p>\n
Advanced Seal have <\/p>\n
been licensed from <\/p>\n
external partners<\/p>\n
E.g. Cotton Buds, Inc <\/p>\n
was granted the license<\/p>\n
to produce, market <\/p>\n
and distribute single<\/p>\n
–<\/p>\n
use <\/p>\n
packets of Tide detergent<\/p>\n
The idea<\/p>\n
\u2022<\/p>\n
Web platform where interested parties can submit technologies and browse for P&G technologies to licence <\/p>\n
\u2022<\/p>\n
Encompasses marketing models, packaging, engineering, business services, market research methods etc.<\/p>\n
Results<\/p>\n
\u2022<\/p>\n
Surpassed goal of creating 50% of P&G\u2019s innovations with outside partners (initially 15%)<\/p>\n
\u2022<\/p>\n
R&D productivity up with 85%, over 1000 active agreements<\/p>\n
Licensing P&G\u2019s <\/p>\n
unnecessary <\/p>\n
technologies <\/p>\n
to interested <\/p>\n
buyers<\/p>\n
Alliance process<\/p>\n
\u2022<\/p>\n
Finding the <\/p>\n
right partner<\/p>\n
Courtship <\/p>\n
\u2022<\/p>\n
Agreeing roles, ownership, <\/p>\n
profit share and <\/p>\n
responsibilities<\/p>\n
Negotiation <\/p>\n
\u2022<\/p>\n
Committing <\/p>\n
resources, <\/p>\n
establishing <\/p>\n
systems, making <\/p>\n
adjustments<\/p>\n
Start<\/p>\n
–<\/p>\n
up<\/p>\n
\u2022<\/p>\n
Ongoing investment and <\/p>\n
operations<\/p>\n
\u2022<\/p>\n
Evolving with change<\/p>\n
Maintenance<\/p>\n
\u2022<\/p>\n
Finding an exit <\/p>\n
strategy (sometimes <\/p>\n
friendly but <\/p>\n
sometimes not)<\/p>\n
Termination<\/p>\n
\u2022<\/p>\n
Finding the <\/p>\n
right partner<\/p>\n
Courtship <\/p>\n
\u2022<\/p>\n
Agreeing roles, ownership, <\/p>\n
profit share and <\/p>\n
responsibilities<\/p>\n
Negotiation <\/p>\n
\u2022<\/p>\n
Committing <\/p>\n
resources, <\/p>\n
establishing <\/p>\n
systems, making <\/p>\n
adjustments<\/p>\n
Start<\/p>\n
–<\/p>\n
up<\/p>\n
\u2022<\/p>\n
Ongoing investment and <\/p>\n
operations<\/p>\n
\u2022<\/p>\n
Evolving with change<\/p>\n
Maintenance<\/p>\n
\u2022<\/p>\n
Finding an exit <\/p>\n
strategy (sometimes <\/p>\n
friendly but <\/p>\n
sometimes not)<\/p>\n
Termination<\/p>\n
Alliance motives<\/p>\n
Scale alliance<\/p>\n
Lower cost, share risk, increase bargaining power<\/p>\n
Access alliance<\/p>\n
Access to capabilities\/assets<\/p>\n
Complementary\/learning alliances<\/p>\n
Access\/learn from partner strength<\/p>\n
Collusive alliance<\/p>\n
Increase market power (can be illegal)<\/p>\n
Vertical\/horizontal<\/p>\n
Legal requirements<\/p>\n
Strategy fit<\/p>\n
What are the key objectives of this alliance from the standpoint<\/p>\n
of each partner?<\/p>\n
Resource fit<\/p>\n
What resources does each partner contribute to the relationship?<\/p>\n
Are they similar or different?<\/p>\n
Organisation fit<\/p>\n
What are the organizational structures of <\/p>\n
each firm<\/p>\n
? Are<\/p>\n
they similar or different?<\/p>\n
Culture fit<\/p>\n
What are the cultural values and belief systems of each<\/p>\n
partner? Are they similar or different?<\/p>\n
Source: Cummings and Holmberg (2012)<\/p>\n
Strategy fit<\/p>\n
What are the key objectives of this alliance from the standpoint<\/p>\n
of each partner?<\/p>\n
Resource fit<\/p>\n
What resources does each partner contribute to the relationship?<\/p>\n
Are they similar or different?<\/p>\n
Organisation fit<\/p>\n
What are the organizational structures of <\/p>\n
each firm<\/p>\n
? Are<\/p>\n
they similar or different?<\/p>\n
Culture fit<\/p>\n
What are the cultural values and belief systems of each<\/p>\n
partner? Are they similar or different?<\/p>\n
Source: Cummings and Holmberg (2012)Partner selection<\/p>\n
Factors affecting alliance outcomes<\/p>\n
Justice Conflict Control Trust<\/p>\n
Perceptions of fairness Creates tensions\/gives diversity of Many different types strategic, Trust evolves over time though <\/p>\n
Distributive, procedural, ideas operational, structural, output, repeated successful interactions interactional Moderate task conflict may be process, social Hard and soft commitments<\/p>\n
Cultural perceptions\/differences? beneficial Bargaining power Ability based, benevolence based, Relationship conflict is a problem integrity based<\/p>\n
Conflict resolution mechanisms<\/p>\n
Cultural perceptions\/differences?<\/p>\n
\u2022 Commitment cooperation<\/p>\n
Collaborating with competitors<\/p>\n
\u2022<\/p>\n
Cognitive<\/p>\n
(<\/p>\n
similarity of the knowledge base<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Geographical<\/p>\n
(<\/p>\n
distance between partners<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Social<\/p>\n
(<\/p>\n
embeddedness of partners, trust, personal experiences<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Organisational<\/p>\n
(<\/p>\n
similarity of incentives and organizational routines<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Institutional<\/p>\n
(<\/p>\n
similarity of values and norms on a macro level, e.g., <\/p>\n
national culture and legal system) <\/p>\n
With whom <\/p>\n
to collaborate: proximity*<\/p>\n
\u2022<\/p>\n
Cognitive<\/p>\n
(<\/p>\n
similarity of the knowledge base<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Geographical<\/p>\n
(<\/p>\n
distance between partners<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Social<\/p>\n
(<\/p>\n
embeddedness of partners, trust, personal experiences<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Organisational<\/p>\n
(<\/p>\n
similarity of incentives and organizational routines<\/p>\n
)<\/p>\n
\u2022<\/p>\n
Institutional<\/p>\n
(<\/p>\n
similarity of values and norms on a macro level, e.g., <\/p>\n
national culture and legal system) <\/p>\n
With whom <\/p>\n
to collaborate: proximity*<\/p>\n
*)<\/p>\n
Boschma (2005): Proximity and innovation: a critical assessment. <\/p>\n
Regional Studies<\/p>\n
, 39, pp. 61<\/p>\n
\u2013<\/p>\n
74<\/p>\n
\u2022<\/p>\n
You & your competitor win: <\/p>\n
pre<\/p>\n
–<\/p>\n
requisite <\/p>\n
for longer<\/p>\n
–<\/p>\n
term collaboration<\/p>\n
\u2022<\/p>\n
Customers win: <\/p>\n
insurance against collusion <\/p>\n
\u2013<\/p>\n
and thus regulatory action<\/p>\n
\u2022<\/p>\n
Limited scope <\/p>\n
usually needed to achieve all these wins<\/p>\n
How to collaborate: <\/p>\n
win<\/p>\n
–<\/p>\n
win<\/p>\n
–<\/p>\n
win<\/p>\n
*)<\/p>\n
Boschma (2005): Proximity and innovation: a critical assessment. <\/p>\n
Regional Studies<\/p>\n
, 39, pp. 61<\/p>\n
\u2013<\/p>\n
74<\/p>\n
\u2022<\/p>\n
You & your competitor win: <\/p>\n
pre<\/p>\n
–<\/p>\n
requisite <\/p>\n
for longer<\/p>\n
–<\/p>\n
term collaboration<\/p>\n
\u2022<\/p>\n
Customers win: <\/p>\n
insurance against collusion <\/p>\n
\u2013<\/p>\n
and thus regulatory action<\/p>\n
\u2022<\/p>\n
Limited scope <\/p>\n
usually needed to achieve all these wins<\/p>\n
How to collaborate: <\/p>\n
win<\/p>\n
–<\/p>\n
win<\/p>\n
–<\/p>\n
win<\/p>\n
Co-opetition: competitors collaborating<\/p>\n
All major regions & varieties:<\/p>\n
Ata Rangi<\/p>\n
Craggy Range<\/p>\n
Felton Road<\/p>\n
Fromm Winery<\/p>\n
Kumeu River<\/p>\n
Lawson\u2019s Dry Hills<\/p>\n
Nautilus Estate<\/p>\n
Neudorf Vineyards<\/p>\n
Palliser Estate<\/p>\n
Pegasus Bay<\/p>\n
The Millton Vineyards<\/p>\n
Villa Maria Winery<\/p>\n
Selection criteria:<\/p>\n
Minimal direct overlap<\/p>\n
Similar cultures <\/p>\n
(quality focus, family-owned)<\/p>\n
Source: William Hoare\u2019s presentation 14.9.2015<\/p>\n
Next week<\/p>\n
International strategy<\/p>\n
Required reading: Chapter 8<\/p>\n
Required reading: Case 3: Nyrstar NV<\/p>\n
Don\u2019t forget your preparation (poste one comment). <\/p>\n
2<\/p>\n
2<\/p>\n
2<\/p>\n
2<\/p>\n","protected":false},"excerpt":{"rendered":"
Today\u2019s learning objectives Develop an understanding of cooperative strategies Discuss strategic alliances Understand different types of cooperation Explain risks of cooperative strategies Strategic alliances Alliances \u201cvoluntary arrangements between firms involving exchange, sharing, or codevelopment of products, technologies, or services.\u201d (Gulati 1998) \u2022 Access to partner resources and capabilities Equity alliance Existing companies take ownership stakes […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-97869","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/97869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=97869"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/97869\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=97869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=97869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=97869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}