Published by:
Harvard Business Publishing
Length: 9 pages
Share a link:
https://casecent.re/p/45307
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Increasingly, senior executives who wish to expand their company's product, geographic, or customer reach consider alliances to be the strategic vehicle of choice. In the past five years, the number of domestic and cross-border alliances has grown by more than 25% annually. But the term alliance can be deceptive: in many cases, it really means an eventual transfer of ownership. The median life span for alliances is only about seven years, and nearly 80% of joint ventures end in a sale by one of the partners. Based on the author's experience with more than 200 alliances in various stages, they have developed a way for managers to diagnose whether an alliance is likely to lead to a sale and to devise an appropriate strategy--to assess bargaining positions and the risks of unplanned outcomes, and to plan for the partnership's evolution. They distinguish six types of alliances based on their probable outcomes: collisions between competitors, alliances of the weak, disguised sales, bootstrap alliances, evolutions to a sale, and alliances of complementary equals.
About
Abstract
Increasingly, senior executives who wish to expand their company's product, geographic, or customer reach consider alliances to be the strategic vehicle of choice. In the past five years, the number of domestic and cross-border alliances has grown by more than 25% annually. But the term alliance can be deceptive: in many cases, it really means an eventual transfer of ownership. The median life span for alliances is only about seven years, and nearly 80% of joint ventures end in a sale by one of the partners. Based on the author's experience with more than 200 alliances in various stages, they have developed a way for managers to diagnose whether an alliance is likely to lead to a sale and to devise an appropriate strategy--to assess bargaining positions and the risks of unplanned outcomes, and to plan for the partnership's evolution. They distinguish six types of alliances based on their probable outcomes: collisions between competitors, alliances of the weak, disguised sales, bootstrap alliances, evolutions to a sale, and alliances of complementary equals.