WORLD AROUND US

Cooperative strategies
Business level strategy
Corporate level strategy
 STRATEGIC ALLIANCE
JOINT VENTURE
 Wal-Mart retail superstores you see in most
every small, medium, and large city in America.
Rather, the retail giant formed a joint venture
in 2006 with Bharti Enterprises, Inc., one of
India's leading business groups.
EQUITY STRATEGIC ALLIANCE
 Citigroup inc with Shanghai Pudong
development bank
NON EQUITY STRATEGIC
ALLIANCE
 Sears, roebuck and co. agreement to outsource its credit
card business to citigroup. For $3billion
BUSINESS LEVEL STRATEGIC
ALLIANCE
 Complementary strategic alliance
 Vertical
 Universal music group a division of Vivendi universal has put
together a vertical SA by forming a venture to create a new
label called “Casablanca” in the music business recruiting
executives (interscope,island def jam, universal motown,bad
boy entertainment)who have relationships with the music
artists.
 Horizontal
 Bell Canada and Microsoft Canada – to provide internet
services in Canada through a new portal. Bell canada
responsible for content development and for customer
support, billing and marketing while Microsoft provided
access to its portal infrastructure and to online services such
as hotmail and msn messenger.
UNCERTAINTY REDUCING
STRATEGIC ALLIANCE
 Wind infostrada spa Italy's 3rd largest telecom
company signed an agreement with Japan's
NTT docomo inc to become the sole provider
of docomo’s i-mode technology i-mode
technology which allows users to access the
internet on their mobile handsets .docomo
saw this relationship as an opportunity to
establish a foothold for its standard in cell
technology and Wind was sharing the risk
with docomo as they test to see if I mode
will be a successful standard in Europe.
COMPETITION RESPONSE
STRATEGIC ALLIANCE
COMPETITION REDUCING
STRATEGIC ALLIANCE
 AOL dominated the im business with almost
60 mn users. Yahoo! And MSN also operate in
IM services but unlike email, instant
messages cannot cross over programs which
irritated many users AOL and Microsoft
quietly announced in 2003 that they would
make their IM services work together MSN
had the next largest group of IM users and
through this agreement with AOL was able to
reduce the level of competition
CORPORATE LEVEL STRATEGIES
 Diversifying strategy
 Japanese chipmakers hitachi,NEC,mitsubishi
electronic,fujitsu,and Toshiba used JV to consolidate and
then spin off diverse businesses that were a drag on earnings.
 Hitachi and Mitsubishi electronic created a JV called Renesas
that focused on producing large scale integrated circuits.
 Hitachi further entered into a JV with NEC called Elpida
which was considered the last Japanese DRAM maker.
 Fujitsu realized that memory chips were becoming financial
burden so it dumped its flash memory business into a JV
controlled by Advanced Micro Devices. These alliances
resulted in the involved firms being able to refocus in their
core businesses, reduce excessive diversification and add
value to their film.
CORPORATE LEVEL STRATEGIES
 Synergistic strategic alliance
 SBC communications and EchoStar
communications were synergistically
diversified by the arrangement to offer
satellite TV billing services through SBC’s
system.
CORPORATE LEVEL STRATEGIES
 Franchising
 Mcdonalds,hilton international,krispy kreme