Global Marketing Management

Chapter 9 Cooperative Strategies

And Global Strategic Alliances

Warren J. Keegan
Overview
 The Nature of Global Strategic Partnerships
 Success Factors
 Alliances between Manufacturer & Marketer
 International partnerships in developing
countries
 Co-operative Strategies in Japan: keiretsu
 Beyond Strategic Alliances
 Summary

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Learning Objectives
 Be cognizant of global strategic
partnerships – GSPs
 Recognize success factors of GSPs
 Learn about key characteristics of
Japanese keiretsu & their effects on
competition

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 Demands on Strategic Alliances
 Competitive collaborations offer significant advantages
 Characteristics:
 Participants remain independent following to the formation of
the alliance
 Participants share the benefits of the alliance as well as control
over the performance of assigned tasks
 Participants make ongoing contributions in technology,
products and other key strategic areas

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 Global Strategic Partnership
 Two or more companies develop a joint long-term
strategy
 The relationship is reciprocal
 Vision & efforts are truly global
 Transfer of resources between partners
 Partner must know their core strength and be able to
defend their position
 When in new markets, partners must retain identities

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 Success Factors of Alliances
 Mission
 Strategy
 Governance
 Culture
 Organisation
 Management

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Four Principles of GSPs

1. Partners are still in competition with each

other
2. Some conflict is to be expected
3. Must understand where cooperation ends
& competitive compromise begins
4. Learning from partners is critical

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Case Examples of Partnership

 CFM International/GE/Snecma- A success story

 AT&T/Olivetti - A Failure
 Boeing/Japan - A Controversy

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 Co-operative Strategies in Japan:
Keiretsu
 Interbusiness alliance or enterprise group, where
different companies or company groups are intertwined
 Operates in a broad spectrum of markets
 Keiretsu executives sit on each other`s boards & share
information
 Foreign competitors interpret keiretsu relations as
cartels which dominate the market and restrict
competition
 The most famous keiretsu are Mitsui and Mitsubishi

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 Beyond Strategic Alliances
 Information, communication technologies and
globalisation have fostered new forms of strategic
alliances:
 Relationship enterprise
 Groups of firms in different industries will be held together by
common goals that encourages them to act like a single firm
 Virtual corporation
 Multiple co-operations which are employed only when needed

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 Summary
 Companies can choose among a wide range of
alternatives, when participating in foreign
markets
 Ownership requires substantial resources, but
offers full control
 Co-operative strategies include global strategic
partner-ships, the Japanese keiretsu or the virtual
enterprise

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