Question: One reason why firms might want to pursue a strategic
One reason why firms might want to pursue a strategic alliance strategy is to exploit economies of scale. Exploiting economies of scale should reduce a firm’s costs. Why would this mean that a firm pursuing an alliance strategy to exploit economies of scale is actually pursuing a cost leadership strategy?
Answer to relevant QuestionsLittle empirical evidence indicates that having a formal, written mission statement improves a firm’s performance. Yet many firms spend a great deal of time and money developing mission statements. Why?Consider the joint venture between General Motors and Toyota. GM has been interested in learning how to profitably manufacture high-quality small cars from its alliance with Toyota. Toyota has been interested in gaining ...Some researchers have argued that alliances can be used to help firms evaluate the economic potential of entering into a new industry or market. What, if anything, about an alliance makes this a better way to evaluate entry ...What are the strengths and weaknesses of increased leverage as a response to free cash flow problems in a firm?The transnational strategy is often seen as one way in which firms can avoid the limitations inherent in the local responsiveness/international integration trade-off. However, given the obvious advantages of being both ...
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