Published by:
Harvard Business Publishing
Length: 10 pages
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Abstract
Entente--the forging of an alliance--goes against the grain with most managers, who have been taught never to share control of a company. But alliances are necessary in a world of rapid globalization. Customer needs and preferences all over the world are converging. Technology is dispersing as well; no one company can keep the relevant technology in-house. As a result, companies face increasing fixed costs, which, in turn, point toward forging alliances.
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Abstract
Entente--the forging of an alliance--goes against the grain with most managers, who have been taught never to share control of a company. But alliances are necessary in a world of rapid globalization. Customer needs and preferences all over the world are converging. Technology is dispersing as well; no one company can keep the relevant technology in-house. As a result, companies face increasing fixed costs, which, in turn, point toward forging alliances.