Transcript What is an Alliance Strategy? - Sean Gallagher Consulting

What is an
Alliance
Strategy?
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What is an Alliance Strategy?
Why do companies engage into an Alliance?
Why do Alliance sometimes fail?
Four Elements of Alliance Strategy:
Alliance Design
Alliance Management
Alliance Constellation
Alliance Capability
Conclusion
References
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Strategic Alliance
This is a formal relationship or a deal (new
venture) between two or more parties to
pursue a set of agreed goals to meet critical
business needs while remaining independent
organizations.
Alliance Strategy
An alliance strategy represents much more
than a deal. It is an intent, a dynamic process,
and a logic that guides alliance decisions.
“A Strategic Alliance without an
Alliance Strategy is condemned
to fail”
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To
To
To
To
To
To
enter restricted overseas market
gain competitive advantage
search for capabilities such as technology
share risk
gain economies of scale
gain more market share
Facts: Today, Alliances account for 20- 50% of
corporate value; whether it is measured in
terms of revenue, assets, income or market
capitalization.
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Over the years, numerous studies have shown
that 30- 70% of Alliances fail
Do not meet the goals of the parent
companies
Clashing corporate cultures and goals
Unclear strategies
Weak or unbalanced alliance economics
Lack of sufficient operating staff skills and
parent commitment
Four Elements of Alliance Strategy
Alliance Design
Alliance Management
Alliance Constellation
Alliance Capability
Alliance Design
• Why use an alliance?
• What is the scope of
the alliance?
• Criteria and methods
of selecting partners
• Options for
structuring the alliance
Four Elements of Alliance Strategy
Alliance Design
Alliance Management
Alliance Constellation
Alliance Capability
Example, Venture
between Xerox and
Fuji Photo Film was
created to help Xerox
sell copiers in Japan.
Alliance Management
• Process of making
decisions
• Operational decisions
• Performance and
relationship between the
parent company and
other company
Four Elements of Alliance Strategy
Alliance Design
Alliance Management
Alliance Constellation
Alliance Capability
Example, The Star
Alliance Case
Alliance Constellation
• Should the alliance
be formed?
• How many and what
type?
• Interaction among
alliances
Four Elements of Alliance Strategy
Alliance Design
Alliance Management
Alliance Constellation
Alliance Capability
Alliance Capability
• Who in the
corporation should be
responsible for
specific tasks?
• The success of
external alliances
often depends on
having a supportive
internal infrastructure
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The Success of an Alliance Strategy depends
much on the unfolding relationship between
the partners.
Companies will not survive if they try to do
everything themselves.
Alliance Strategy wins the race!!!!!
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http://www.alliancestrategy.com/PDFs/BGC%20AllianceStrategy%20CriticalEY
E04.pdf
www.google.com
Alliance Strategy: Fundamentals for Success, Ben Gomes-Casseres (2003) :
The Arc of Alliance Strategy
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Mai Tilogavichai
Thivaphorn Narang
Chinajade Yipyintum
Nalin Limpivilas
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Thank You
Q&A