Question Identify and discuss the four (4) categories which strategic alliances can fall into as discussed. Clearly identify a type of alliance, from the discussion for Peter based on the scenario presented with the use of a company locally or regionally to improve his chances of succeeding in the market. The name of the company must be clearly stated. Information from the scenario must be included to support the discussion. Please see image with scenario and 4 categories of strategic alliance to answer the question.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Identify and discuss the four (4) categories which strategic alliances can fall into as discussed. Clearly identify a type of alliance, from the discussion for Peter based on the scenario presented with the use of a company locally or regionally to improve his chances of succeeding in the market. The name of the company must be clearly stated. Information from the scenario must be included to support the discussion.

Please see image with scenario and 4 categories of strategic alliance to answer the question. 

Strategic alliances can fall into one of four categories
which are depicted and explained below in Figure.
Non-competitive
alliances
Competitive
alliances
Precompetitive
alliances
Procompetitive
alliances are
generally
Precompetitive
Alliances
Precompetitive
Alliances
Competitive
Alliances
Noncompetitive
Alliances
Intra-industry links among non-
competitive firms.
are similar to non-competitive
alliances in terms of the joint
activity (and hence in the level of
organisational interaction) but
differ in that the partners are apt
to be direct competitors in the
final product market.
typically bring together firms
from different, often unrelated
industries to work on well-
defined activities such as new
technology development.
Inter-industry, vertical value-
chain relationships, as between
manufacturers and their
suppliers or distributors
Transcribed Image Text:Strategic alliances can fall into one of four categories which are depicted and explained below in Figure. Non-competitive alliances Competitive alliances Precompetitive alliances Procompetitive alliances are generally Precompetitive Alliances Precompetitive Alliances Competitive Alliances Noncompetitive Alliances Intra-industry links among non- competitive firms. are similar to non-competitive alliances in terms of the joint activity (and hence in the level of organisational interaction) but differ in that the partners are apt to be direct competitors in the final product market. typically bring together firms from different, often unrelated industries to work on well- defined activities such as new technology development. Inter-industry, vertical value- chain relationships, as between manufacturers and their suppliers or distributors
Peter is considering operating a local business in the textile, clothing and footwear sector. Peter
has completed research into the operations of similar businesses both locally and regionally and
intends to market and sell his products both at the local and regional level at the same time. Peter
understands that to shape the business's overall strategy there are various strategic drivers both
internally and externally which must be considered and wants expert advice on these drivers
relevant to his business. He is also struggling with deciding on the best structure for the
organization, as well as the most effective ways of marketing his products to ensure that they are
more attractive to buyers than the current options. Peter is considering a strategic alliance but is
not sure if to form links among non-competitive firms or associate with firms in an un-related
activity. He is also aware that even other types strategic alliances exist but does not have a good
grasp on this area to make an informed choice. Peter is aware of internal and external tools which
businesses use to understand the operating environment but is unsure which ones are feasible for
his business or will provide the most relevant information. Peter wants to go global in the future.
He was listening to a radio program and they mentioned that there are drivers that shape strategies
when persons are considering going global but he is not familiar with what these are. Whilst Peter
has a lot of ideas, he recognizes the need for help to ensure his success.
Transcribed Image Text:Peter is considering operating a local business in the textile, clothing and footwear sector. Peter has completed research into the operations of similar businesses both locally and regionally and intends to market and sell his products both at the local and regional level at the same time. Peter understands that to shape the business's overall strategy there are various strategic drivers both internally and externally which must be considered and wants expert advice on these drivers relevant to his business. He is also struggling with deciding on the best structure for the organization, as well as the most effective ways of marketing his products to ensure that they are more attractive to buyers than the current options. Peter is considering a strategic alliance but is not sure if to form links among non-competitive firms or associate with firms in an un-related activity. He is also aware that even other types strategic alliances exist but does not have a good grasp on this area to make an informed choice. Peter is aware of internal and external tools which businesses use to understand the operating environment but is unsure which ones are feasible for his business or will provide the most relevant information. Peter wants to go global in the future. He was listening to a radio program and they mentioned that there are drivers that shape strategies when persons are considering going global but he is not familiar with what these are. Whilst Peter has a lot of ideas, he recognizes the need for help to ensure his success.
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