Alliance Strategy Alliance Strategy

ByMs.Valiaporn L. ID 4880579Ms.PimpugC. ID 4980021Mr.Tatiya W. ID 4980026Ms.Tarika R. ID 4980122Ms.Chutinan T. ID 4980682

IntroductionIntroductionAlliances are fueling the success of

a wide range of firms, including General Electric, Federal Express, IBM, and Starbucks.

Alliance strategic represents much more than the deal. It is intent, a dynamic process, and logic that guides alliances decision.

The Four Elements of The Four Elements of Alliance strategyAlliance strategy

1. Alliance DesignThere are 4 steps in conducting alliance

design:• Identify the role of the alliance in the

business strategy• Setting goals, rationale, and scope of

alliance• Determining the criteria and method for

selecting partner• Drafting the structure and processes for

sharing value and decision making in the alliance

2. Alliance Management

Learning to work together and governing an alliance relationship

-Joint DecisionsKnow and understand the role of

alliance leaders, from top-level executives to day-to-day managers.

Exit strategy-why alliance end and how to

prepare for a graceful separation.

The Four Elements of The Four Elements of Alliance strategyAlliance strategy

The Four Elements of The Four Elements of Alliance strategyAlliance strategy

3. Alliance Constellation A constellation is the collection of

alliance.

The concept of competition has changed from firm against firm to group against group.

A poorly designed and managed constellation can lead to the conflict among the alliance

To be able to designing and managing constellation, it requires decisions, capabilities, and structures

The Four Elements of The Four Elements of Alliance strategyAlliance strategy

4. Alliance Capability

The firm need a support from internal infrastructure to be able to be successful in external alliance.

The best strategy usually start at home.

For example, some firms’ capability depends on organizational culture of the company.

• The level of investment on capability depends on the firm’s objective and strategic circumstances.

The Arc of Alliance The Arc of Alliance StrategyStrategyIt represents the overall view of

what it takes to be able to succeed with alliances

It’s the business model of the firm

The Arc of Alliance The Arc of Alliance StrategyStrategyConsists of 6 main things

◦ Alliance Design Set out the goals, structure and also partner

selection

◦ Alliance Management Make sure that the goal is match with the

managing style

◦ Alliance Constellation Selecting partner to be alliance with can effect the

major goal of alliance

◦ Alliance Capability Determine how it will tackle alliance management

◦ Business Strategy◦ Business Organization

Definition of AllianceDefinition of AllianceAlliance can be used to fulfill a

broad of range of corporate goals, include gaining scale, reducing cost, accessing new skills, products, or markets, and sharing risks.

How can we know which one is suit for the company?

These agreements have 3 characteristics in common.◦two or more separate firms◦incomplete contract◦ joint decision making

Mastering Alliance Mastering Alliance StrategyStrategy• Mastery comes from deep understanding, frequent practice, and some wisdom from others. • No best-practice formulas• No matter how successful a practice is in one company, it may be completely wrong for others.• The effectiveness of a management practice depends on: • Its organizational• Strategic contexts

Mastering Alliance Mastering Alliance Strategy (Con’t)Strategy (Con’t)To know what strategy works for you: • Understanding the overall of what the company wants• To know what another company is doing, also knowing more about why its people is doing and what they are doing

• Knowing how to translate and adapt the foreign experience to your own company

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