STRATEGIC ALLIANCE INCOME ANALYSIS INCLUDING STRATEGICDETERRENCE EFFECT

摘要

Strategic alliance is enterprise’s important instrumentrnto reduce the operating cost or achieve differentiation, andrnalso the important means to promote the competitivernadvantage. Analyzing strategic alliance’s income is thernimportant basis for enterprise to determine whether to setrnup strategic alliance or not, and can become the decisionmakingrnbasis whether the potential rivals of outsidernmarket enter the market. This paper analyzes the incomernthat the strategic alliance brings through constructing arngame model in a market with many incumbents andrnpotential entrants. The strategic alliance mainly analyzedrnhere is the type of reducing cost alliance. We note thatrnstrategic alliance can promote competitive advantage tornenterprise even more if it is considered its effect to thernmarket structure. We conclude that strategic alliancernbrings not only the income due to cost reduction but alsornthe income due to strategic deterrence effect. The strategicrnalliance's income, which includes strategic deterrencerneffect, is influenced by a great deal of factors. The costrnthat the potential entrants enter the market and the degreernthat strategic alliance decreases enterprise's operating costrnhave positive correlation with the strategic alliance’srnincome. The cost of setting up and maintaining alliancernhas negative correlation with the strategic alliance’srnincome. These factors will directly influence the decisionsrnthat whether incumbents set up the alliance and thernpotential entrants enter the market.