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Corporate Development (Subject) / Alternatives to vertical integration (Lesson)
- alternatives to vertical integration tappered integration (making sime and buying the rest) joint ventures and strategic alliances close-knit semiformal relationships based on long-term collaborative relationships and implicit contracts between firms
- what is a joint venture a company founded by two independent companies while the founding companies continue existing typically, both companies contribute the same amount of capital know-how, resources, infrastructure and licences are contributed
- subcontractor networks japanese manufacturers maintain close, informal, long term relationships with their network of subcontractors far more asset specificity in japan than in the west
- Keiretsu Members with stron institutional linkages links further strengthened by social affiliation and personal relationship among executives easy coordination and no holdups when vertical chain activities are performed by keiretsu members
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