Difference Between Joint Venture, Partnerships, Alliance, And Cooperative Strategy

Introduction

The intensive competition will lead companies to move in a global direction to increase revenue. However, every company strives to initiate and or create a competitive advantage in regards to their goods and services or whatever the company is offering. Core competencies are what lead companies to form a joint venture, partnerships, alliance, and cooperative strategies. Per (Michael & Hitt, 2017) “because firms reallocated and have similar needs, it’s easier for them to jointly work together, for example, United States alliance between Ford and General Motors in developing upgraded nine and ten-speed transmission.” By combining the companies, it turns out to be a complementary asset and enhances the quality of the products. For

However, cooperative strategies are used to initiate funding and assets for all involved parties. Furthermore, companies work with strategic alliance to define a specific purpose or goal and to take full opportunity of financial prudence. For example, complementary strengths revolve around a company competitive advantage. The game changer in a joint venture is entering an untapped market. Nevertheless, strategic alliance allows companies access to new markets. Also, joints ventures allow each company the opportunity to market to existing customers or new customers. Joint ventures are vital, it allows each company the opportunity to growth, share profit, shares risk, maximizes project needs, and to rely on each other. Besides, cooperative strategies are a significant part of joint ventures due to it helps each company project an increase in

Therefore, making an alliance with other companies usually the result is to achieve goals, objectives, and business growth. Furthermore, this is a great advantage for the companies to differentiate themselves and explore all opportunities. Each company will need to work as a cohesive unit. Ordinarily, the goal of all the companies will be gaining and competitive advantage over their competitors, collaboration, and access to each company resources. The joint venture will benefit each company if all companies are advancing and gaining