Alliances

Table of Contents

Introduction2

Managing Alliances2

Problems of Alliance Management4

Selection of Partner for Alliance4

Selection Criteria5

Commitment5

Resources and Skills5

Compatibility6

Previous Relationships6

Characteristics of the Partner7

Willingness to Cooperate, Involvement7

Skills7

A few Examples of Alliances8

Ben and Jerry 7-Eleven in Japan8

IBM, i2 Technologies and Arib Alliance8

Toyota-Peugeot-Citroen Alliance8

Another Alliance8

Strategic alliances in the field of marketing & sales8

Strategic alliances in the Research & Development9

Conclusion10

Alliances

Introduction

An alliance is an association among two or more than two parties to pursue a set of settled upon objectives or to meet an important business requirement at the same time as remaining autonomous organizations. Partners might offer the strategic association with resources for instance products, manufacturing capability, distribution channels, project funding, knowledge, capital equipment, intellectual property or expertise. The alliance is collaboration or cooperation that intends for cooperation where all partner expects that the advantages from the association will be more than those from a personal efforts. The alliances often entail transfer of technology (access to expertise and knowledge), economic specialization, and shared expenses with shared risk (Whipple et.al, 2000, pp. 21-28).

In recent years the phenomenon of making alliances has grown rapidly. Among the key success factors of these alliances, the selection of partners is really an important issue. However, in the literature there are many works on alliances, but there is a lack of studies on this stage. The most appropriate approaches to reach the level of fit between the companies that make possible the success of the alliance.

Selection of partner is considered as an important responsibility in the organization of alliances. A correct choice of alliance partner is a condition for the victory of an alliance. By investigating the steps for a procedure of partner selection, selection criterion and tools utilized to support the process of partner selection. This study aims to offer an integral clarification of partner selection. More than a few companies utilize a relatively structured for partner selection process, however, the greater part also makes out that their course of partner selection might be improved more (Arno, 2002, pp. 66-79).

A key factor for the success of alliances is the adjustment level between the partners, there is a model partner selection based on four dimensions: strategic, organizational, operational and cultural. The selection items for each dimension were classified related tasks or with partners. However, these elements have a different relative importance to each business or company. They select their partners based on only the most important elements, constituting its selection criteria. Depending on certain factors, companies will assess how different model elements, establishing different criteria for selecting partners (Dyer et.al, 2001, 37-43).

Managing Alliances

The importance of strategic alliances has increased dramatically in recent years. Certain industries, particularly the electronics, automotive, aviation and aerospace industry are even disproportionately represented. This confirms the widespread assumption that in particular the international high-tech markets, the cooperation in the logic of the entire world economy seems to be. These markets are becoming more global and more dynamic, the product life cycles are becoming shorter and shorter, and new product developments are necessary. Alliances are clearly a phenomenon of the triad, ...