Corporate Strategic Alliances: Stability Analysis And Mitigation Mechanisms

Enterprise strategy union is an effective way of compensating the lackof their resources, enhancing their ability of R&D and learning, anddeveloping their core competence. The implement of strategy union willincrease the growth of their business, profit and market value, being theimportant means of multi-national development and fast-growing. Thecompetitive advantage of enterprise strategy union comes from theintergradations of the institutional and organizational advantage. Thestability of enterprise strategy union is important to the existence and therealization of its target. The analysis of stability will make enterpriseunderstand the establishment and development of the enterprise strategy unionas a form of organization.Enhancing the stability of enterprise strategy union can help enterprisesavoid the negative impact induced by fluctuations of the union. Based on thisthinking, this article begins with the concept of strategy union, consideringrelative findings of the analysis of stability of strategy union. Here wedemonstrate a specific analysis of case about strategy union, using thedimension analysis and game theory. Then we find the instability factor andaccordingly mitigation mechanism, proposing the objective laws and Necessaryconditions of its existence. Finally, there are some proposals for theestablishing of enterprise strategy union.