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Cooperative Strategies and Challenges

   

Added on  2021-03-08

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The casediscusses cooperative strategies of actual situations that crashed for many reasons, including high costs, competition of rivals, complete absence of proper management andalliance-related dynamics, joint ventures and partnership strategies [ CITATION Bas10 \l 1033 ].The situation is full of important examples including such Cisco and IBM, as well as airline one-word collaboration and Sky Team, which formed an alliance even though they were from the same division and competed with problems. Another interesting topic was the relationship with DowAksa which is a carbon chemicals firm, but since it has already been in collaboration with another firm, it has also generated organizational and functional difficulties. The competition won by several other rivals in association with wrong collaborators and a weak plan including the Red Box and Verizon are also complexities. The case underlines the importance of a proper strategy and implementation; however, the choice ofpartner is far more crucial.Complexities in the creation of joint projects and partnerships collaboration strategiesJoint venture and partnerships may be closely related to work for the growth and performance of the organization. The joint venture is indeed a long-term agreementwith a large number of assets and costs exchanged because the alliance is a scaling agreement [ CITATION Sta17 \l 1033 ]. As discussed in the case of cooperative strategies as well as other problems in Joint Venture and Alliances are as follows:• Internal and external management problems• The associated company's compatibility• Failure to preparea proper strategic objective• Incompetent planning• Organizational culture gap• Unreasonable demand with unsuitable classifications and management
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Role of competitors for cooperation strategyCompetition between competitors provides the company with a sense of encouragement and aims to enhance the output for companies which are associated and form alliances with it. Therefore, working together with rivals is better than the industry's greatest rival. Collaboration with rivals canexternally leadto achievea good reminder and gain customer value [ CITATION Ism16 \l 1033 ]. However, major factors for its performance should be identified, for example peaceful activities, well planned agreements and limitationsin decision making. Canon is Kodak's supplier of photocopiers and offers both high quality and benefit, making them stand outfrom companies such asFuji, Nikon etc. in the marketplace.Costs and management for strategic alliances growthAlliances are generally made for increased margins and advantages and the investment always pays off. Some of the main expenses involved during the formation of strategic partnerships are inventory expenses, hard costs like interest rate, insurance and tax expenses; although some soft expenses are layout fees, project management fees and employee training expenses, etc. [ CITATION Dur161 \l 1033 ].These expenses can be administered by an effective supply chain system to minimize inventory expenses. The time frame for the product and service (the objectives of the alliance) was minimumin the Zara as well as the South-West airlineand thus cost management can be reduced.Cost minimization versus opportunity maximization as primary goal of cooperative strategyMinimizing costs eliminates costs by reducing the number of retail customers in a business such as lead-time extension, inventory expenditures, equipment of fewer amounts, agreements, etc. whereas maximization of opportunities is a matter of optimizing wealth through
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