Analysis of Strategic Alliances and Vertical Cooperation in the Beef Industry

This study was conducted to increase available knowledge about strategic alliances and vertical cooperation in the beef industry. Proponents of strategic alliances promise producers and the industry increased returns. Information about alliance characteristics is limited. The overall objective of this research was to increase available information about beef alliances so producers can make more informed decisions regarding their use. Specific objectives of this research were (1) develop an accurate list of alliances and their characteristics, (2) identify the characteristics in the alliance that influence vertical cooperation, (3) devise a categorization system for each characteristic, and (4) develop a measurement system to classify alliances according to the degree of vertical cooperation they achieve. Primary contributions of this research are increased information about strategic alliances and an investigative tool that can be used by producers, alliances and industry segments. Data for this research were collected from twenty-seven different alliances during 1997 - 1998. Six different scoring methods were used to calculate the degree of vertical cooperation achieved by an individual alliance. Rank correlation tests were conducted between each combination of the six scoring method