The rationale for a firm’s cooperate-level strategy is applied to cooperative strategy. Select one of the three types of corporate-level cooperative strategy alternatives discussed in the text.(The...

Cooperative Corporate Strategy
Cooperative Corporate Strategy

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Cooperative Strategy
A cooperative strategy is a strategy in which two firms plan to work together for achieving
shared goals of both the companies. This is basically done to enhance the value creation for
the consumers, surpass the cost of construction of the consumer value and establish the
favorable position as compared to the competitors. (Asiedu, et al 2001)
Strategic Alliance
Three Types of Strategic Alliances
There are three kinds of strategic alliances which are prevalent in corporates:
 Joint Venture: This arrangement pertains to creation of a legal
entity which is independent company and shares the resources and capabilities. (Hill, 1999)
 Equity Strategic Alliance: This alliance is formed on the basis
of different percentages of equity by the various companies in the separate company they
form. (Hill, 1999)
 Nonequity Strategic Alliance: The two or more companies
form a contractual relationship who shares certain unique assets and competencies. (Hill,
1999)
Cooperative Corporate Strategy

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Joint Venture as extension of corporate strategy
The reason why many firms get into the joint venture is has its answer in the inherent
corporate strategy which is made by its founding fathers and followed by the contemporary
leaders of the company. (Asiedu, et al 2001) When a firm realizes that the prime focus of the
corporate strategy is growth and expansion into newer markets or products then it...