Changing Business Environment Companies For A New Customer Base

Decent Essays
Question 1:
In today’s ever changing business environment companies need to explore newer opportunities and take some risks to succeed. An article provided by Powerlinx, had surveyed 330 senior management executives, to provide some feedback as to what benefits could be achieved from creating strategic partnerships. There were six central benefits. One benefit was gaining access to a new customer base. The expanded customer base would lead to increased market share which would allow a business to succeed in their market segment. The second most important benefit would be expanding revenue. Aligning with other firms that have similar objectives would make processes much more efficient. When businesses align, there are additional
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When companies work together, the investment burden is shared and production time is significantly reduced. The synergy between the four companies will allow them to each focus on a particular area in order to achieve their strategic plan. In addition to more efficient resource pooling and shared responsibility, risk is significantly reduced. According to the Harvard Business Review, a “company sets up a joint venture with a partner that has complementary assets and capabilities, in order to limit up-front investments, speed up market entry, and reduce risk” (Vantrappen, Deneffe). If one of these companies could handle all of the operations themselves, initiating a joint venture might need to be reconsidered; the competitive advantage would be too valuable. Unfortunately, none of these companies have that luxury, so the joint venture is warranted.

Question 2:
One opportunity in external environment which may have led this initiative is the growing ownership of alternative fuel powered vehicles in the marketplace. According to the US Department of Energy, alternative fuel powered vehicles were on the rise in the late 2000s ("7-8 Alternative"). In regards to liquefied natural gas, the product was growing rapidly in popularity due to the technological advancements of natural gas drilling giving way to a surplus of LNG for use ("What Is LNG and Why Is It Popular"). Dan Usin (Navistar CEO) even said “Natural gas has clearly emerged as the most
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