mgmt 352 strategic alliances

strategic alliances

voluntary arrangements between firms that involve sharing of knowledge, resources, & capabilities with the intent of developing processes, products or services

pros of non equity alliance

flexible, fast, easy to initiate & terminate

cons of non equity alliance

weak tie, lack of trust & commitment

pros of equity alliance

stronger tie, trust & commitment can emerage, window into new tech

cons of equity alliances

less flexible, slower, can entail significant investment

joint venture pros

strongest tie, trust & commitment likely to emerge

joint venture cons

can entail long negational & significant investments, long-term solution