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LEARNING OBJECTIVES
- Know the four types of cooperative moves.
- Understand the benefits of taking quick and decisive action.
In addition to competitive moves, firms can benefit from cooperating with one another. Cooperative moves such as forming joint ventures and strategic alliances may allow firms to enjoy successes that might not otherwise be reached ("Making Cooperative Moves")[Image missing in original]. This is because cooperation enables firms to share (rather than duplicate) resources and to learn from one another’s strengths. Firms that enter cooperative relationships take on risks, however, including the loss of control over operations, possible transfer of valuable secrets to other firms, and possibly being taken advantage of by partners. 1
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