Alliance Strategy By Ms.Valiaporn L.ID Ms.PimpugC.ID Mr.TatiyaW.ID Ms.TarikaR.ID Ms.Chutinan T.ID

Introduction Alliances 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 Alliance strategy 1. Alliance Design There 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 Decisions Know 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 Alliance strategy

3. Alliance Constellation A constellation is the collection of alliance. The concept of competition has changed fromfirm against firm to group against group. A poorly designed and managed constellationcan lead to the conflict among the alliance To be able to designing and managingconstellation, it requires decisions, capabilities,and structures

The Four Elements of Alliance strategy 4. Alliance Capability The firm need a support from internalinfrastructure to be able to be successful inexternal 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 dependson the firm’s objective and strategiccircumstances.

The Arc of Alliance Strategy It 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 Strategy Consists 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 Alliance Alliance 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 Strategy 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 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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