Академический Документы
Профессиональный Документы
Культура Документы
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Alternative Routes to Expansion
3 Ways
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Internal Development: Corporate New Venturing
(Intrapreneurship)
Advantages:
Allows entry into a new or emerging industry where no
suitable acquisition candidates are available
Avoids pitfalls and uncertainty associated with acquisition
Protects IP rights
Disadvantages:
Requires extensive investments in developing production
capacities and competitive capabilities
May fail due to internal organizational resistance to change
and innovation or external resistance (environmental issues)
Ample time to
develop and
launch
business Cost of
Availability of acquisition is
in-house skills higher than
and resources internal entry
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Alliance
Agreement between two or more firms to jointly manage assets
and achieve strategic objectives. Some alliances may create a
separate jointly owned (legal) entity - called a joint venture.
Collaborative Strategies
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How alliance is different from outsourcing?
Alliances help in
Reducing management costs
Alleviates agency problems in case of risky projects
Assets each party needs remain firm specific and only
a subset of these are held by its partner
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Scope of Strategic Alliance
Alliances may involve joint marketing, joint sales & distribution, joint
production, design collaboration, joint R&D for new technologies or products
Inter-firm relationships
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Classification along Knowledge Management
Alliances
Equity
Licensing
Non-equity
products and
Networks
technologies
Joint marketing
Joint production
Exploitation Exploration
(Source: Culpan, 2008)
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https://www.msu.edu/~howardp/crosslicensing.pdf
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Major Strategic alliances in the global market
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Value creation & capture in Alliance
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Alliance failure
More than 50% of alliances fail, but they still account for 26% of
revenues of Fortune 1000 in 2008. Why this paradox?
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Alliance Life Cycle and Key Success Factors
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Ciscos Collaboration Strategy
CISCOs growth strategy has three components of innovation - build, buy, and partner. It
operates an extended enterprise - global ecosystem - that includes integration, channel,
technology, industry solution companies, service providers.
In an industry facing technological complexity & rapid changes, one company can not
develop all technological solutions .that customer desires. So, Cisco developed a
multifaceted partnering program to offer tangible business value.
http://www.cisco.com/en/US/prod/collateral/voicesw/c22-558396-00_value_partners_so.pdf
Use the right framework that considers all stages of alliance life
cycle
Evaluating a strategy and potential partner
Form an alliance
Incubate the partnership
Operating the alliance
Transitioning to next level
Retiring the alliance
Develop the right organization people are important
Build the right relationship/ processes promote internal and
external communication
Right tools to store and share alliance knowledge
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How Cisco has been so successful?
Agility Alliance
to innovate, operationalize and deliver technology solutions
with globally recognized companies such as Microsoft,
Oracle, Deloitte, PricewaterhouseCoopers, SAP, Symantec
Technology Alliance
to develop, implement and jointly market differentiated
services. Focus is on specific technologies or domains and
provide standards. Partners include Citrix, Red Hat, Tibco,
VMware
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Dyer et al, 2001
End ..
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