Free Paper Sample on Corporate Level Cooperative Strategies

Introduction

The business-level cooperative strategy is a strategy where various organizations work collectively to realize a certain common goal (Luo, 2009). These organizations share the resources as well as capabilities equitably to create a great competitive advantage in new products, brands, or services. On the other hand, a corporate-level cooperative strategy involves a form of strategy created on the corporate level between different business companies coming together to realize some common objective (Balmer & Greyser, 2013). Therefore, this paper discusses various business-level cooperative strategies and forms of corporate-level cooperative strategies.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Business-Level Strategies

Based on business-level strategies, there include four business-level cooperative strategies, including complementary strategic alliances (vertical or horizontal), competition response strategy, uncertainty-reducing strategy, as well as a competition-reducing strategy (McGee et al., 2015). First, a complementary strategic alliance is where various organizations share their available resources as well as capabilities on a complimentary basis, trying to create a competitive strategy. Second, competition response strategy involves techniques designed to offer an effective response to the stiff competition in the market. This form of plan is mostly applied to counter-attack rival organizations in the market (McGee et al., 2015). Third, an uncertainty-reducing strategy is applied to minimize various risks that an organization faces based on its business expansion as well as sustainability. Lastly, a competition-reducing strategy is employed to minimize any form of competition affecting the organization. This strategy plays a pivotal role in deciding the business’ sustainability in the market.

Conclusion

Conversely, there are three forms of corporate-level cooperative strategies: Firstly, diversifying alliances is a strategy where firms share resources and their talents to enable them to create new products, services, or maybe geographic diversification (Balmer & Greyser, 2013). This strategy promotes competitive advantage among firms in the market. Secondly, a firm may apply synergistic alliances by sharing its resources to develop economies of scale, hence helping them realize competitive advantage in the market over its rivals. Thirdly, the franchising strategy is applied when a firm utilizes its franchise agreement terms and conditions to explain how its resources will be used by its franchisees (Balmer & Greyser, 2013).

References

Balmer, J. M., & Greyser, S. A. (Eds.). (2013). Revealing the corporation: perspectives on identity, image, reputation, corporate branding, and corporate-level marketing: an anthology. Psychology Press.

Luo, Y. (2009). Entry and cooperative strategies in international business expansion. Greenwood Publishing Group.

McGee, J. E., Dowling, M. J., & Megginson, W. L. (2015). Cooperative strategy and new venture performance: The role of business strategy and management experience. Strategic management journal, 16(7), 565-580.