Milestone Schedule

The cooperative strategy is a method that priority Defense Company employs as we try to realize our objectives by cooperating with other companies dealing with security aspects of the economy. The co-operations we have are in the form of strategic alliances as well as partnerships instead of having competitions with them (Manfredo, 2007). Through these co operations, we can gain advantage by getting partners who help in covering for certain deficiencies that could arise in the company. The partnerships are in the forms of resources, knowledge or knowledge we can attain through the links we have with other companies having the skills or assets we need in the field. The links also help must access the new markets, as well as opportunities for mutual synergy, as well as learning. Through these cooperation’s, we can enhance our competitive strategy by improving on certain attributes. The cooperation also enables us to attain our mission easily by enhancing our ability to access the new markets available (de Mattos, 2014).

In joint venture alliances, we form a new as well as independent company together with our partners where we all contribute assets into the company. An equity strategic alliance is whereby the company that we get into a partnership with can own a similar number of shares in a particular company (Wen, 2014). Both of us well as the partners are to be superior in the passing of matters relating to know-how between us as we closer in hierarchical control of the company. Non-equity strategic alliance, on the other hand, is whereby my Company gives another company the responsibility to produce, supply as well as distribute our products without giving them any equity (Shen, 2014).

International cooperative strategy involves the cross-border alliances in which companies have headquarters in diverse nation pool some of their resources as well as capabilities to attain a competitive advantage. The logic behind the international cooperation is that the multinational companies normally outperform those operating on a local basis. Desire to attain expand into the international markets when the local markets fail to offer room for growth. Strategic alliances with the local companies’ help the multinationals overcome the liabilities to do with the lack of knowledge in a new market (SALAVOU, 2013).

The importance of the cooperative strategies is broad and vital for any firm that is competing on a global platform. However, there are numerous and complex challenges that need managing. The two basic approaches in the management of cooperative strategies include the cost minimization and opportunity maximization. The cost minimization approach follows that the firm establishes formal contracts with its partners. The contracts are meant to spell out the monitoring of the cooperative strategy as well as the method of controlling the partners. The intention of the approach is to minimize the cost of the cooperative strategy and at the same time curtail the opportunistic behavior of partners (Krishna-Hensel, 2007).

The opportunity maximization approach, on the other hand, focuses on the opportunities for value creation of the partnerships. Thus, it prepares the partners to take utmost advantage of the opportunities that are unexpected and at the same time learn from one other to explore more possibilities for marketplace. It allows the partners to investigate means their resources, as well as abilities, can be shared in various values creating means (Manfredo, 2007).

  

References

De Mattos Fagundes, P., Machado Padilha, A. C., & Padula, A. D. (2014). Co-marketing alliances in the Brazilian biofuel sector: An analysis based on strategic alliances. Science & Public Policy (SPP),41(5), 553-560.

Krishna-Hensel, S. F. (2007). The Imperative for Cooperation: A Response to Global and Cross-Border Challenges. Conference Papers -- International Studies Association, 1.

Manfredo, M. R., & Richards, T. J. (2007). Cooperative Risk Management, Rationale, and Effectiveness: The Case of Dairy Cooperatives. Agricultural Finance Review, 67(2), 311-339.

SALAVOU, H. E., & SERGAKI, P. (2013). Generic Business Strategies in Greece: Private Food Firms versus Agricultural Cooperatives. Journal Of Rural Cooperation, 41(1), 44-59.

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