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Essay / Research Paper Abstract
This 3 page paper looks at four ways that businesses may work together; through strategic alliances, mergers and acquisitions, as well as vertical integration and the use of outsourcing, defining each business strategy and giving some examples of firms that have used those strategies. The bibliography cites 3 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEtogether.rtf
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Unformatted sample text from the term paper:
mergers and acquisitions, as well as vertical integration and the use of outsourcing. There are potential advantages and disadvantages to each, which are considered individually Strategic Alliances Strategic
alliances are created where two or more firms work together with a specific goal, so both will benefit. This may be in increased sales, lower costs or the transfer of
skills or knowledge (Mintzberg et al, 2008). The main goal will be a synergy, where there is an agreed level of co-operation that does not involve mergers or equality purchases,
but will create an increase in the bottom line. There are two main types of strategic alliances, the first is that which take place between companies at the same stage
in the value chain that may deal in competing products or services, or complimentary goods and services. These are horizontal in nature; the motivation may be economies of scope or
scale (Thompson, 1998). Alternatively, it may be to gain access to a wider audience geographically. This type of alliance may be typified with
Toshiba. This company has extended its global brand and used alliances internationally to gain advantages. Toshiba has alliances with a number of major competitors, such as Seimens, Ericson, General Electric,
Motorola and GEC where they work together on development of products and also have a high level if inter-firm trade (Thompson, 2007). This is classified by Toshiba as a "circle
of friends", where ideas and technical knowledge is shared, and the learning curve reduced (Thompson, 2007). However, there are also dangers, there may be the transfer of knowledge and the
loss of commercially sensitive information, cooperation may have costs, and it may be costly to extrapolate the firm from the alliance if there is a disagreement. Mergers and Acquisitions
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