Two articles describing firms’ use of a cooperative strategy: one where trust is being used as...

Two articles describing firms’ use of a cooperative strategy: one where trust is being used as a strategic asset and another where contracts and monitoring are being emphasized. What are the differences between the managerial approaches being used in the two companies? Which of the cooperative strategies has the highest probability of being successful? Why?

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Expert Solution

Louis Vuitton and BMW are only one example of a luxurious partnership. In 2014 Louis Vuitton joined forces with BMW to build what they call "Virtual Luggage." Louis Vuitton developed a carbon-fiber high-end luggage designed to fit beautifully into the new BMW i8 sports car. The mix has become a luxurious hit. After all the ads, they had the opportunity to buy the Louis Vuitton luggage collection when a client bought a BMW i8. What most people did, so they made it for each other. There are two high-end companies who partner and trust each other to make a high-end transaction who helped all of them.

AOL and Time Warner Cable are an example of an alliance that failed. This alliance was considered one of the worst ever made. The companies thought they would benefit from one another. However, at the time of this alliance the entire economy went into a recession. The two companies also had different values and cultural difference, at the time it had different audiences. Though, one may think that them creating an alliance would’ve been the next best thing, the economy did not help the development of the alliance. Many companies nowadays have succeeded with the internet, cable and phone packages. However, back in the year of 2002, when the alliance between these two companies was trying to be developed there was no such thing.

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keosha answered 3 months ago

find two articles describing firms’ use of a cooperative strategy: one where trust is being used...

find two articles describing firms’ use of a cooperative strategy: one where trust is being used as a strategic asset and another where contracts and monitoring are being emphasized. What are the differences between the managerial approaches being used in the two companies? Which of the cooperative strategies has the highest probability of being successful? Why?

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