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rative Strategies ? Corporatelevel cooperative strategies are designed to facilitate product and/or market diversification diversifying strategic alliance synergistic strategic alliance franchising ? Diversifying alliances and synergistic alliances allow firms to grow and diversify their operations through a means other than a merger or acquisition 17 CorporateLevel Cooperative Strategies: Diversifying Alliances ? diversifying strategic alliance allows a firm to expand into new product or market areas without pleting a merger or an acquisition ? provides some of the potential synergistic benefits of a merger or acquisition, but with less risk and greater levels of flexibility ? permits a “test” of whether a future merger between the partners would benefit both parties Diversifying Alliances 18 CorporateLevel Cooperative Strategies: ? synergistic strategic alliances create joint economies of scope between two or more firms ? create synergy across multiple functions or multiple businesses between partner firms Synergistic Alliances Synergistic Alliances Diversifying Alliances 19 CorporateLevel Cooperative Strategies: ? franchising spreads risks and uses resources, capabilities, and petencies without merging or acquiring another pany ? contractual relationship concerning the franchise that is developed between two parties, the franchisee and the franchisor ? an alternative to pursuing growth through mergers and acquisitions Franchising Franchising Diversifying Alliances Synergistic Alliances 20 International Cooperative Strategies ? Crossborder strategic alliance – an international cooperative strategy in which firms with headquarters in different nations bine some of their resources and capabilities to create a petitive advantage – a firm may form crossborder strategic alliances to leverage core petencies that are the foundation of its domestic success to expand into international markets 21 International Cooperative Strategies ? Allows risk sharing by reducing financial investment ? Host partner knows local market and customs ? International alliances can be difficult to manage due to differences in management styles, cultures or regulatory constraints ? Must gauge partner’s strategic intent so they do not gain access to important technology and bee a petitor 22 Network Cooperative Strategies ? A work strategy is a cooperative stra