Monday, April 15, 2013

Strategic Alliances - Netflix

A strategic alliance exists whenever two or more independent organizations cooperate in the development, manufacture, or sale of products or services. Strategic alliances have 3 categories: nonequity alliances, equity alliances, and joint ventures. 

Netflix seems to be exploiting economies of scale by partnering with various technological device companies such as Apple, XBox, PlayStation, Wii, etc. that can stream Netflix's movies and television shows. The cost here is extremely low, and the partnership allows for marketing leverage for each company. Here is an article about a potential strategic alliance for Netflix.  

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