Corporate Strategy: Build-Borrow-or-Buy Framework

Front

What is the build-borrow-or-buy framework?

Back

It helps companies decide how to grow: by building new things, borrowing from others, or buying companies.

Front

What are strategic alliances?

Back

They are partnerships between companies to share resources and knowledge.

Front

Why do companies make alliances?

Back

To be stronger, enter new markets, and learn new things.

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What is a merger?

Back

When two companies join together to become one.

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What is an acquisition?

Back

When one company buys another company.

Front

What is horizontal integration?

Back

When a company merges with a competitor.

Front

What is a joint venture?

Back

A new company created by two or more companies working together.

Front

What is the goal of strategic alliances?

Back

To work together to create better products and services.

Front

What is a governance mechanism?

Back

Rules or agreements that help manage partnerships.

Front

What is the importance of trust in alliances?

Back

Trust helps partners work better together.