Business Level Cooperative Strategy - Term Paper Example

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The present study would analyze the aspect of vertical integration versus strategic alliances as a possible supply chain management strategy of firms engaged in the aerospace and defense industry competing in the international markets in a globalized market environment…
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Business Level Cooperative Strategy
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Download file to see previous pages According to the study findings strategic alliances can be defined as co-operative agreement and arrangements between the two or more partners, and hence, the co-operative relationship management is one of the prime requirements in strategic alliances.  The strategies aim to meet this requirement are known as the business level co-operative strategies. Co-operation is one of the basic attributes of the strategic alliances and the partners must have a clear understanding of this attribute for framing a set of business level co-operative strategy. Kwok and Hampson have identified the very specific parameters to measure and frame the co-operative strategies in case of strategic alliances. Firstly, the level of co-operation should be out of any kind of mutual desire or need. Secondly, a partner must co-operate for sharing risk. Thirdly, partners’ co-operation should determine a strong foundation for business growth. Finally, the co-operation must aim to minimize “the likelihood of opportunistic behavior”.This paper highlights that the need for greater consolidation within the highly capital intensive aerospace and defense industry segment has paved the way for greater alliance and collaboration among various organizations for an effective supply chain management. The need to develop high-end research has also promulgated the need to have greater strategic alliances with international partners. For example, the NATO partners are actively trying to enter into greater collaborations and strategic alliances with the US and European companies in a bid to improve upon the efficiency of the companies. ...Download file to see next pagesRead More
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