Mini-Case Study Analysis

Posted: August 25th, 2021

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Mini-Case Study Analysis

Q1: Resource-Based Rationale

The resource-based view is an emphasis on how different companies attempt to maximize their investment value by pooling and utilizing valuable resources. This category of resources is often scarce, not easy to imitate, and not present in the direct substitutes. Thus, to fill this necessity gap, firms have opted for strategic alliances and joint ventures as a way of gaining access to other organization’s resources to strengthen their unavailable competitive advantage.

Q2: Core Competencies

A firm’s core competency is its avenue for sustainable competitive advantage. The company needs distinguishable internal strength to ensure strong differentiation, provide more customer value, and strengthen its extendible model. If any of these attributes are lacking, the company may strategically identify and develop a system that integrates potential organizations in the industry to supply them with models to fill the gap. In the process, they set a strategic alliance from which both of the companies benefit ultimately.

Q3: Complementary Assets

In economics, partners in alliance have complementary assets when they share advantages to reach a goal which could not be reached by each of them individually. For instance, Renault-Nissan alliance realized complementary strength for both companies when they could organize new locations of manufacturing together. Nissan managed to discover how to manufacture small compact cars that Renault had specialized in producing. Similarly, Renault determined how to use technology in the production of large passenger vehicles.

Q4: Risk Associated with Corporate-Level Alliance

Whereas the companies have shown interest in working together, the major challenge that could affect their deal, especially the one involving Nissan-Renault, is the variation in corporate structure. Nissan works as a collective entity with non-centralized decisions. However, Renault has centralized its decision-making process. Thus, their alliance is intended to achieve efficient production process while changing the two companies’ structure to help accommodate each other.

Q5: Network Cooperative Strategy

Companies can compete globally but share ideas locally. Due to the desire to meet the shared objectives, different automobile firms can enter in network cooperative strategy. However, for this move to succeed, the willing corporations must fall under geographically clustered regions. Finally, despite the market completion, such companies must share effective social relationship and interaction among themselves.