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Creating a Good Competitive environment

Companies can use strategic alliances to create a competitive environment is more conducive to performance leader.

Ease develop technology standards

Companies can use the alliance to help set the technology standard in the industry. By this standard, technology-based products can be developed and consumers can trust that the products they buy will be useful for some time to come.

The company formed strategic alliances with the aim of evaluating and selecting a technology standard. By setting this standard, the technology can be run on products that consumers like to buy these products, because consumers will know that they will conform to industry standards at the time. This alliance strategy can be used to create a better competitive environment (favorable).

Facilitating tacit collusion

Collusion occurs when two or more firms within an industry to coordinate their strategy choices to reduce competition in the industry. Reduction of competition makes it easier to improve company performance.

Collusion occurs when firms coordinate their production and pricing with no direct communication with the others, but with the exchange of signals with other companies regarding their intent to work together.

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