A major goal of a strategic alliance is to create additional value for both firms. After reading the Chapter 9 of the textbook and reviewing the Powerpoint slides on the chapter, answer the following questions.
There are three ways that alliances create value. Describe how value is created for each partner in the two alliances discussed in the case.
There are three forms of “cheating” discussed in the textbook and slides: Adverse Selection, Moral Hazard, and Holdup. For each alliance, discuss how Aegis’s strategic partner may cheat or has cheated.
Which alliance is more valuable for Aegis? Explain why you think so.
Jahn has a difficult decision. Should she give the alliances more time, should she terminate one or both alliances, or should she restructure one or both alliances. Provide a detailed explanation for you answer.