05 Jul Global Strategy and Policy Discussions
Question Description
There are three main governing mechanisms for strategic alliances (non-equity, equity, and joint venture). What are the benefits and downsides for each of the mechanisms?
Why do firms form alliances? Alliances are often used to pursue business-level goals, but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense.
What is a strategic alliance and what are the differences between equity and nonequity alliances?
What are vertical and horizontal business-level alliances? What are corporate-level strategic alliances?
What are the major risks involved in forming strategic alliances? Can you give an recent example from the news of a strategic alliance gone wrong?
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