Question

what are some of the risks associated with cooperative strategies?

Answer 1

Below mentioned are some of the risks associated with the cooperative strategies:

1. The success of the strategy depends on the performance of both the companies

2. The companies will confine themselves to the existing opportunities and the individual company cannot explore new opportunities in the market on its own

3. The strategy might fall apart due to small issues like communication gap in the company

4. Failure of the partner company to invest the required time, money, and resources to make it a successful venture

5. One company might take advantage of the competences of the other company and improve its business.

6. The companies might disagree when they are planning to enter a new business or a market with a new product