Published by MBA Skool Team, Last Updated: January 22, 2018
What is Business Level Cooperative Strategies?
A business level cooperative strategy is the one in which a number of firms work together to attain some common goal. The firms share their resources and the capabilities they have to create some competitive advantage in the form of new products or services.
In this way, the firms also share the costs of the new product. It also helps them diversify, attain flexibility in terms of diversifying operations and strengthens their position with respect to their competitors. Besides, it facilitates their growth and improves their performance. There are different types of business level cooperative strategies like Joint Venture, Horizontal integration, vertical integration, Conglomerate diversification, etc.
Eg – Some examples of business level cooperative strategies are as follows :
Vertical integration – When Amazon.com also started book publishing besides just book selling, it backward vertically integrated and started publishing its own books.
Horizontal integration – Google buying YouTube
Joint venture – Joint venture of Japanese consumer electronics company Sony Corporation and Swedish Telecommunications company Ericsson to form Sony Ericsson, a mobile phones company.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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