Network Competion

Question 1

3 Types of Strategic Alliances

Answer 1

1. Joint Venture - when two or more companies work together but dont want any enemy overtake. Share their resources and capabilities to come up with sth new. AES corporation and siemens brought together Fluence
2. Equity Strategic Alliance - ensures that business partners are all on board. Connected with a chain and talk about institutional projects and how it works. Panasonic and Tesla
3. Non-Equity Strategic Alliance - Investment in terms of shareholders have a contract to share resources and capabilities. eg starbucks and Kroger

Question 2

Motives behind strategic alliances / airlines

Answer 2

1. Internationalization
2. Individualization of Demand
3. Increased Competition
4. Technological advances
5. reduces cost
6. lost income
7. competition is too fierce
8. coudnt stuff customers in the machines
9. more attractive deals for the customers

Question 3

3 Market cycles

Answer 3

1. Slow Cycle - competitive advantage, protected, sustainable Vaccine production Market, Healthcare, Power supply
2. Fast Cycle - easy to imitate, speed up development, improves original design, speed up market entry IT, telecommunication
3. Standard Cycle - Competitive advantage but cannot stay forever. Imitation is possible but would be costly. learn capabilities better through new business techniques. Furniture industry, airlines industry depending upon certain factors.

Question 4

Two types of Complementary alliances

Answer 4

1. Vertical Complementary - Different supply chain where companies come together and agrees on capabilities and skills. product development.
2. Horizontal Complementary - It is in the same industry segment. Long term product development and has trust amongst themselves. eg company 1 lacks in services and company 2 lacks in operations. By joining together company 1 will benefit from services and company 2 will benefit from the operations.

Question 5

What is Co-opetition?

Answer 5

This is merged scenario of competition and co operation. Despite being competitors, the companies willingly cooperate together run business successfully. It helps to be more efficient and effective and wont be harmful. This also increases interest amongst the customers.