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Industrial Organisation 2022

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Question:

Where does alliances fit in the "increasing integration continuum"?

Author: Hjalmer Pedersen



Answer:

As can be seen in the model, firms can cooperate on mainly 3 levels: Outsourcing  Alliances  M&A. • Strategic alliances must be approved by the competition authorities • Motive for the alliance is – as often - primarily cost savings • Alliances can have similar effects on the market as ordinary mergers.


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As can be seen in the model, firms can cooperate on mainly 3 levels: Outsourcing  Alliances  M&A.

•	Strategic alliances must be approved by the competition authorities
•	Motive for the alliance is – as often - primarily cost savings
•	Alliances can have similar effects on the market as ordinary mergers.
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