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Types of Synergies: Three Kinds of Synergies by Combining and Customizing Resources Differently

This document discusses different types of synergies that can be achieved through various strategic partnerships and combinations of resources. It identifies modular, sequential, and reciprocal synergies and analyzes the optimal strategic approach based on factors like the nature of resources, extent of redundant resources, market uncertainty, and competitive forces. Non-equity alliances are generally best for modular synergies while acquisitions are optimal for reciprocal synergies. The appropriate strategic choice also depends on how important soft resources are and the level of market uncertainty or competition.

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544 views5 pages

Types of Synergies: Three Kinds of Synergies by Combining and Customizing Resources Differently

This document discusses different types of synergies that can be achieved through various strategic partnerships and combinations of resources. It identifies modular, sequential, and reciprocal synergies and analyzes the optimal strategic approach based on factors like the nature of resources, extent of redundant resources, market uncertainty, and competitive forces. Non-equity alliances are generally best for modular synergies while acquisitions are optimal for reciprocal synergies. The appropriate strategic choice also depends on how important soft resources are and the level of market uncertainty or competition.

Uploaded by

aksh_teddy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Types of Synergies

Three kinds of synergies by combining and customizing


resources differently
Modular synergies:
Airlines and hotels (non-equity alliances best way)
Sequential synergies:
Rigid contracts or equity based alliances
Reciprocal synergies:
Acquisitions is the best way
Nature of Resources
Synergies should be created using hard or soft
resources?
Relative importance of soft to hard resources:
Low:
non-equity alliance
Low/medium:
Acquisition
High:
equity alliance
Extent of Redundant Resources
High:
acquisition/ merger preferred
Medium
Equity Alliance
Low:
Non-equity alliance

Market Factors
Degree of Uncertainty:
For a particular collaboration, the degree of
uncertainty can be low, high or medium
High uncertain:
Equity alliance
Low/ Medium:
Acquisitions
Low:
Nonequity alliance
Forces of Competition
Degree of competition for resources:
Low: non-equity alliance
Medium: equity alliance
High: Acquisitions

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