Reference no: EM132453037

1. One reason why firms might want to pursue a strategic alliance strategy is to exploit economies of scale. Exploiting economies of scale should reduce a firm's costs. Does this mean that a firm pursuing an alliance strategy to exploit economies of scale is actually pursuing a cost leadership strategy? Why or why not?

2. Consider the joint venture between GM and Toyota. General Motors has been interested in learning how to profitably manufacture high- quality small cars from its alliance with Toyota. Toyota has been interested in gaining access to GM's U. S. distribution net-work and in reducing the political liability associated with local content laws. Which of these firms do you think is more likely to accomplish its objectives, and why? What implications, if any, does your answer have for a possible " learning race" in this alliance?

3. Some researchers have argued that strategic alliances are one way in which firms can help facilitate the development of a tacit collusion strategy. In your view, what are the critical differences between tacit collusion strategies and strategic alliance strategies? How can one tell whether two firms are engaging in an alliance to facilitate collusion or are engaging in an alliance for other purposes?