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Lecture Crafting and executing strategy (17/e): Chapter 6 - Arthur A. Thompson, A. J. Strickland III, John E. Gamble

Chapter 6 - Supplementing the chosen competitive strategy: Other important business strategy choices. This chapter includes contents: Strategic alliances and partnerships, merger and acquisition strategies, vertical integration strategies: operating across more stages of the industry value chain, outsourcing strategies: narrowing the boundaries of the business, business strategy choices for specific market situations, timing strategic moves – to be an early mover of a late. | Chapter 6: Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices Screen graphics created by: Jana F. Kuzmicki, Ph.D. Troy University Chapter Learning Objectives Gain an understanding of how strategic alliances and collaborative partnerships can bolster a company’s competitive capabilities and resource strengths. Become aware of the strategic benefits of mergers and acquisitions. Understand when a company should consider using a vertical integration strategy to extend its operations to more stages of the overall industry value chain. Understand the conditions that favor farming out certain value chain activities to vendors and strategic allies. Recognize how and why different types of market situations shape business strategy choices. Understand when being a first-mover or a fast-follower or a late-mover can lead to competitive advantage. Chapter Roadmap Strategic Alliances and Partnerships Merger and Acquisition Strategies Vertical Integration Strategies: Operating Across More Stages of the Industry Value Chain Outsourcing Strategies: Narrowing the Boundaries of the Business Business Strategy Choices for Specific Market Situations Timing Strategic Moves – To be an Early Mover of a Late Companies sometimes use strategic alliances or collaborative partnerships to complement their own strategic initiatives and strengthen their competitiveness. Such cooperative strategies go beyond normal company-to-company dealings but fall short of merger or full joint venture partnership. Strategic Alliances and Partnerships Characteristics of a Strategic Alliance Strategic alliance – A formal agreement between two or more separate companies where there is Strategically relevant collaboration of some sort Joint contribution of resources Shared risk Shared control Mutual dependence Alliances often involve Joint marketing Joint sales or distribution Joint production Design collaboration Joint research Projects to jointly develop new . | Chapter 6: Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices Screen graphics created by: Jana F. Kuzmicki, Ph.D. Troy University Chapter Learning Objectives Gain an understanding of how strategic alliances and collaborative partnerships can bolster a company’s competitive capabilities and resource strengths. Become aware of the strategic benefits of mergers and acquisitions. Understand when a company should consider using a vertical integration strategy to extend its operations to more stages of the overall industry value chain. Understand the conditions that favor farming out certain value chain activities to vendors and strategic allies. Recognize how and why different types of market situations shape business strategy choices. Understand when being a first-mover or a fast-follower or a late-mover can lead to competitive advantage. Chapter Roadmap Strategic Alliances and Partnerships Merger and Acquisition Strategies Vertical .