Strategic Alliances

date Mar 13, 2009
reading time 1 min
  • Book Title: Harvard Business Review on Strategic Alliances
  • Author:-
  • Year written/published: 2002
  • Book Source: Google Books, Library
  • Some extracts:

Competitive collaboration adhere to a set of simple but powerful principles:

  • Collaboration is competition in a different form
  • Harmony is not the most important measure of success
  • Cooperation has limits. Companies must defend against competitive compromise
  • Leaning from partners is paramount

Avoiding self-deception:

  • We’re better off partnering with X than competing against it in our core business
  • By joining forces with another second tier company, we can create a strong company while fixing our problems together
  • We need a strong partner to improve skills
  • by partnering with another company in our industry, we can access its new products and technologies while minimizing our investments in core products and technologies
  • We can use an alliance to raise capital without giving up management control

6 types of alliances:

  1. Collision between competitors
  2. alliances of the weak
  3. disguised sales
  4. bootstrap alliances
  5. evolutions to a sale
  6. alliances of complementary equals

some lessons learnt:

  • Groups are only as strong as the alliances within them: manage individual relationships carefully
  • Effective groups are worth more than the sum of the alliances within them: manage the group as a whole
  • the sky is not the limit in alliance groups: expand with caution where you sit in which network determines what you get: position your company strategically within and among alliance groups
  • a lack of commitment is the flip side of flexibility: be sure that the network strategy is sustainable for your company