JOINT VENTURE
World around usCooperative strategies Business level
strategyCorporate level strategySTRATEGIC ALLIANCE
JOINT VENTUREWal-Mart retail superstores you see in most every
small, medium, and large city in America. Rather, the retail giant
formed a joint venture in 2006 with Bharti Enterprises, Inc., one
of India's leading business groups.
Equity strategic allianceCitigroup inc with Shanghai Pudong
development bankNon equity strategic allianceSears, roebuck and co.
agreement to outsource its credit card business to citigroup. For
$3billionBusiness level strategic allianceComplementary strategic
allianceVerticalUniversal music group a division of Vivendi
universal has put together a vertical SA by forming a venture to
create a new label called Casablanca in the music business
recruiting executives (interscope,island def jam, universal
motown,bad boy entertainment)who have relationships with the music
artists.Horizontal Bell Canada and Microsoft Canada to provide
internet services in Canada through a new portal. Bell canada
responsible for content development and for customer support,
billing and marketing while Microsoft provided access to its portal
infrastructure and to online services such as hotmail and msn
messenger.Uncertainty reducing strategic allianceWind infostrada
spa Italy's 3rd largest telecom company signed an agreement with
Japan's NTT docomo inc to become the sole provider of docomos
i-mode technology i-mode technology which allows users to access
the internet on their mobile handsets .docomo saw this relationship
as an opportunity to establish a foothold for its standard in cell
technology and Wind was sharing the risk with docomo as they test
to see if I mode will be a successful standard in
Europe.Competition response strategic allianceCompetition reducing
strategic allianceAOL dominated the im business with almost 60 mn
users. Yahoo! And MSN also operate in IM services but unlike email,
instant messages cannot cross over programs which irritated many
users AOL and Microsoft quietly announced in 2003 that they would
make their IM services work together MSN had the next largest group
of IM users and through this agreement with AOL was able to reduce
the level of competition
Corporate level StrategiesDiversifying strategyJapanese
chipmakers hitachi,NEC,mitsubishi electronic,fujitsu,and Toshiba
used JV to consolidate and then spin off diverse businesses that
were a drag on earnings.Hitachi and Mitsubishi electronic created a
JV called Renesas that focused on producing large scale integrated
circuits.Hitachi further entered into a JV with NEC called Elpida
which was considered the last Japanese DRAM maker.Fujitsu realized
that memory chips were becoming financial burden so it dumped its
flash memory business into a JV controlled by Advanced Micro
Devices. These alliances resulted in the involved firms being able
to refocus in their core businesses, reduce excessive
diversification and add value to their film.Corporate level
StrategiesSynergistic strategic allianceSBC communications and
EchoStar communications were synergistically diversified by the
arrangement to offer satellite TV billing services through SBCs
system.Corporate level StrategiesFranchisingMcdonalds,hilton
international,krispy kreme
