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Discussion Questions
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  1. Horizontal integration has benefits to the firms involved. Consider the consolidation in the event-promotion business when Live Nation bought Ticketmaster in 2010. List some specific advantages of this acquisition for Live Nation. Do you see any downside to the merger?

  2. The chapter identifies three governing mechanisms for strategic alliances (non-equity, equity, and joint venture). Provide the benefits for each of these mechanisms.

  3. The alliance purpose can affect which governance structure is optimal. Compare a pharmaceutical R&D alliance with a prescription-drug marketing agreement, and recommend a governing mechanism for each. Provide reasons for your selections.

  4. Alliances are often used to pursue business-level goals but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense.

  5. Describe the difference between a strong tie and a weak tie in a network. How are weak ties sometimes more useful to the firm/individual?

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