MINI CASE CHAPTER 9
Alliance Formation, Both Globally and Locally, in the Global Automobile IndustryThe academic
literature on alliances has some interesting recent findings, one of which is the rationale that
because firms are often located in the same country, and often in the same region of the
country, it is easier for them to collaborate on major projects. As such, they compete
globally, but may cooperate locally. Historically, firms have learned to collaborate by
establishing strategic alli-ances and forming cooperative strategies when there is intensive
competition. This interesting paradox is due to several reasons. First, when there is intense
rivalry, it is difficult to maintain market power. As such, using a coop-erative strategy can reduce
market power through better norms of competition; this pertains to the idea of “mutual
forbearance”. Another rationale that has emerged is based on the resource-based view of the
firm (see Chapter 3). To compete, firms often need resources that they don’t have but may
be found in other firms in or outside of the focal firm’s home industry. As such, these
“comple-mentary resources” are another rationale for why large firms form joint ventures
and strategic alliances within the same industry or in vertically related industries.Because firms are
co-located and have similar needs, it’s easier for them to jointly work together, for exam-ple,
to produce engines and transmissions as part of the powertrain. This is evident in the European
alliance between Peugeot-Citroën and Opel-Vauxhall (owned by General Motors). It is also the
reason for a recent U.S. alliance between Ford and General Motors in devel-oping upgraded
nine- and ten-speed transmissions. Furthermore, Ford and GM are looking to develop, Mini-
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Chapter 9: Cooperative Strategy301together, eleven- and twelve-speed automatic transmis-sions
to improve fuel efficiency and help the firms meet new federal guidelines regarding such
efficiency.In regard to resource complementarity, a very suc-cessful alliance was formed in
1999 by French-based Renault and Japan-based Nissan. Each of these firms lacked the
necessary size to develop economies of scale and economies of scope that were critical to
succeed in the 1990s and beyond in the global automobile industry. When the alliance was formed,
each firm took an own-ership stake in the other. The larger of the two compa-nies, Renault,
holds a 43.3 percent stake in Nissan, while Nissan has a 15 percent stake in Renault. It is interesting
to note that Carlos Ghosn serves as the CEO of both companies. Over time, this corporate-
level synergistic alliance has developed three values to guide the relation-ship between the two
firms:1.trust (work fairly, impartially, and professionally)2.respect (honor commitments, liabilities,
and respon-sibilities)3.transparency (be open, frank, and clear)Largely due to these established
principles, the Renault-Nissan alliance is a recognized success. One could argue that the main reason
for the success of this alliance is the complementary assets that the firms bring to the alli-ance;
Nissan is strong in Asia, while Renault is strong in Europe. Together they have been able to establish
other production locations, such as those in Latin America, which they may not have obtained
independently.Some firms enter alliances because they are “squeezed in the middle;” that is, they
have moderate volumes, mostly for the mass market, but need to collaborate to establish
viable economies of scale. For example, Fiat-Chrysler needs to boost its annual sales from $4.3
billion to something like $6 billion, and likewise needs to strengthen its presence in the booming
Asian market to have enough global market power. As such, it is entering joint ventures with two
undersized Japanese carmakers, Mazda and Suzuki. However, the past history of Mazda and
Suzuki with alliances may be a reason for their not being overly enthusiastic about the
prospects of the current alliances. Fiat broke up with GM, Chrysler with Daimler, and Mazda with
Ford.This is also the situation in Europe locally for Peugeot-Citroën of France, which is struggling for
survival along with the GM European subsidiary, Opel-Vauxhall. More specifically, Peugeot-Citroën
and Opel-Vauxhall have struck a tentative agreement to share platforms and engines to get
the capital necessary for investment in future models. As such, in all these examples, the
firms need additional market share, but also enough capital to make the investment necessary to
realize more market power to compete.In summary, there are a number of rationales why
competitors not only compete but also cooperate in establishing strategic alliances and joint
ventures in order to meet strategic needs for increased market power, take advantage of
complementary assets, and cooperate with close neighbors, often in the same region of a country
Case Discussion Questions
1.How can the resource-based view of the firm (see Chapters 1 and 3) help us understand why
firms develop and use coopera-tive strategies such as strategic alliances and joint ventures?
As such, using a coop-erative strategy can reduce market power through better norms of
competition; this pertains to the idea of “mutual forbearance”. Another rationale that has emerged
is based on the resource-based view of the firm. To compete, firms often need resources that
they don’t have but may be found in other firms in or outside of the focal firm’s home
industry. As such, these “comple-mentary resources” are another rationale for why large
firms form joint ventures and strategic alliances within the same industry or in vertically related
industries.Because firms are co-located and have similar needs, it’s easier for them to jointly
work together, for exam-ple, to produce engines and transmissions as part of the powertrain.
strategic alliances and joint ventures in order to meet strategic needs for increased market power,
take advantage of complementary assets, and cooperate with close neighbors, often in the same
region of a country.
2.What is the relationship between the core competencies a firm possesses, the core
competencies the firm feels it needs, and decisions to form cooperative strategies?
3.What does it mean to say that the partners of an alliance have “complementary assets”? What
complementary assets do Renault and Nissan share?
the firms need additional market share, but also enough capital to make the investment
necessary to realize more market power to compete. there are a number of rationales why
competitors not only compete but also cooperate in establishing strategic alliances and joint
ventures in order to meet strategic needs for increased market power, take advantage of
complementary assets, often in the same region of a country.
4.What are the risks associated with the corporate-level strategic alliance between Renault and
Nissan? What have these firms done to mitigate these risks?
5.Is it possible that some of the firms mentioned in this Mini-Case (e.g., Renault, Nissan, Mazda,
Peugot-Citroen, Opel-Vauxhall) might form a network cooperative strategy? If so, what conditions
might influence a decision by these firms to form this particular type of strategy?
this corporate-level synergistic alliance has developed three values to guide the relation-ship
between the two firms:
1.trust (work fairly, impartially, and professionally)
2.respect (honor commitments, liabilities, and respon-sibilities)
3.transparency (be open, frank, and clear)Largely due to these established principles, the Renault-
Nissan alliance is a recognized success. One could argue that the main reason for the success of this
alliance is the complementary assets that the firms bring to the alli-ance; Nissan is strong in
Asia, while Renault is strong in Europe. Together they have been able to establish other production
locations, such as those in Latin America, which they may not have obtained independently
Pembentukan Aliansi, Baik Secara Global maupun Lokal, di Industri Otomotif Global Literatur
akademis tentang aliansi memiliki beberapa temuan terbaru yang menarik, salah satunya adalah
alasan bahwa karena perusahaan sering berlokasi di negara yang sama, dan seringkali di wilayah
negara yang sama, lebih mudah bagi mereka untuk berkolaborasi dalam proyek-proyek besar.
Dengan demikian, mereka bersaing secara global, tetapi dapat bekerja sama secara lokal. Secara
historis, ratif dapat mengurangi kekuatan pasar melalui norma persaingan yang lebih baik; ini
berkaperusahaan telah belajar untuk berkolaborasi dengan membangun aliansi strategis dan
membentuk strategi kooperatif ketika ada persaingan yang intensif. Paradoks yang menarik ini
disebabkan oleh beberapa alasan. Pertama, ketika ada persaingan yang ketat, sulit untuk
mempertahankan kekuatan pasar. Dengan demikian, menggunakan strategi koopeitan dengan
gagasan "saling sabar". Alasan lain yang muncul didasarkan pada pandangan berbasis sumber daya
perusahaan. Untuk bersaing, perusahaan sering membutuhkan sumber daya yang tidak mereka
miliki tetapi dapat ditemukan di perusahaan lain di dalam atau di luar industri rumah fokus
perusahaan. Dengan demikian, "sumber daya pelengkap" ini adalah alasan lain mengapa perusahaan
besar membentuk usaha patungan dan aliansi strategis dalam industri yang sama atau dalam
industri yang terkait secara vertikal. Karena perusahaan terletak bersama dan memiliki kebutuhan
yang sama, lebih mudah bagi mereka untuk bersama-sama bekerja sama, misalnya, untuk
menghasilkan mesin dan transmisi sebagai bagian dari powertrain. Ini terbukti dalam aliansi Eropa
antara Peugeot-Citroën dan Opel-Vauxhall (dimiliki oleh General Motors). Ini juga merupakan alasan
aliansi AS baru-baru ini antara Ford dan General Motors dalam mengembangkan transmisi sembilan
dan sepuluh kecepatan yang ditingkatkan. Selanjutnya, Ford dan GM ingin mengembangkan, Mini-
CaseCopyright 2017 Cengage Learning. Seluruh hak cipta. Tidak boleh disalin, dipindai, atau
digandakan, seluruhnya atau sebagian.
1.Bagaimana pandangan berbasis sumber daya perusahaan membantu kita
memahami mengapa perusahaan mengembangkan dan menggunakan
strategi kooperatif seperti aliansi strategis dan usaha patungan?
2. Apa hubungan antara kompetensi inti yang dimiliki perusahaan,
kompetensi inti yang dirasakan perlu oleh perusahaan, dan keputusan untuk
membentuk strategi kooperatif?
3.Apa artinya mengatakan bahwa mitra aliansi memiliki "aset pelengkap"?
Aset pelengkap apa yang dimiliki Renault dan Nissan?
4. Apa saja risiko yang terkait dengan aliansi strategis tingkat korporat antara
Renault dan Nissan? Apa yang telah dilakukan perusahaan-perusahaan ini
untuk mengurangi risiko ini?
5.Apakah mungkin beberapa perusahaan yang disebutkan dalam Mini-Case
ini (misalnya, Renault, Nissan, Mazda, Peugot-Citroen, Opel-Vauxhall)
membentuk strategi kerjasama jaringan? Jika demikian, kondisi apa yang
mungkin mempengaruhi keputusan oleh perusahaan-perusahaan ini untuk
membentuk jenis strategi khusus ini?
