Docstoc

Strategic Alliances - PowerPoint

Document Sample
Strategic Alliances - PowerPoint Powered By Docstoc
					Strategic Alliances
What is Strategic Alliances
 It is agreement for cooperation among two or
  more independent firms to work together in
  the supply chain toward common objectives
 In practice, a group of suppliers provide a
  range of products or services that partly
  complement one another
Types of Strategic Alliances
 Joint Venture
   based on ownership of capital
 Equity Strategic Alliances
   based on ownership of capital and
     involvement
 Nonequity strategic alliance
   based on contracts
 Global Strategic Alliances
   management of the resources
Stages of Strategic Alliances
 Strategy Development

 Partner Assessment

 Contract Negotiation

 Alliance Operation

 Alliance Termination
Drivers of Strategic Alliances
   Technology innovation
   International trade
   Telecommunication development
   Outsourcing of R&D and service
   Collapse of competition barriers
   Foreign investment
   Risks sharing
   Economy of scale
Trends of Strategic Alliances
 Product and Service Performance and
  Complementary
 Position and Leadership in the industry
 Capabilities and Competencies
 Social Responsibility Driven
Key Factors of Success Strategic
Alliances
 Resource commitment
   place the goals of a strategic alliance within
     the framework of the long-term strategies of
     a company
 Information sharing and quality
   Planning the integration
   Evaluating impact on the stakeholders
 Trust and Coordination
   Compatibility, Capability, Commitment
Goals of Forming Alliances
 Setting new global standards
   Blue-ray alliances leaded by sony
 Confronting competition
   CLARK-VOLVO on heavy equipment
 Access to a geographic market
   MOTOROLA-TOSHIBA
 Uniting forces
   BOEING, GENERAL DYNAMICS, LOCKEED
 Access to technology
   Internet 2 Alliances leaded by government
Alliances between corporations and
non-governmental organizations
 It is a new trend, driven by sustainability and
  social responsibility
 exist between corporations in economic
  industries and NGOs in social issue industries
 155 of US Fortune 500 companies forms
  alliances with non-government organizations
Case Study : HD DVDs vs Blue-ray
Hitachi, LG, Panasonic, Pioneer, Philips, Samsung,
   Sharp, Sony, and Thomson formed the Blu-ray
   Disc Foundation
Toshiba, NEC, Sanyo, Microsoft, RCA, Intel, and
   Venturer Electronics formed HD DVD
   Promotion Group
Customer will choose one of two incompatible
   technologies
Blue-ray’s Challenges
 The demand of high definition video

 Inexpensive storage medium to hold large
  amount of data for HD video

 Expensive blue lasers

 Significantly different and incompatible with HD
  DVD technology
Blue-ray alliance’s Approaches
 Shifting studio alliances

 Shifting retail distributors

 Include Blu-ray player in the popular game
  console
The Outcomes
 Toshiba and HD DVD alliances ceased the
  development and production of HD DVD
 Most retailers adopted Blu-ray and phased out
  HD DVD
 Microsoft ceased the production on HD DVD
  player on Xbox
Discuss the following questions:
   What problems do the format war address?
   What issues and challenges do Blu-ray
    present? What can be done to address these
    issues?
   What are the business issues that should be
    addressed when Blu-ray win the format
    war?