CrganlzaLlonal Alllances

MonLhly !ournal SLraLeglc CperaLlonal lannlng

lSSuL 1 A8lL 2011
no SLraLeglc AlllancesPow Can ?ou CompeLe?

CreaLlng susLalnable value ln Loday's globallzed markeLplace for
cusLomers employees and shareholders requlres companles form effecLlve
sLraLeglc alllances Lxpandlng lnLo varlous markeLs and aLLalnlng a
compeLlLlve advanLage are some muLual beneflLs of parLnerlng wlLh
anoLher organlzaLlon Accordlng Lo Co[oharl (nd) alllances are essenLlal
bulldlng blocks for companles Lo achleve a sLronger and more effecLlve
markeL presence lL ls an lmporLanL plece of currenL operaLlons as well as
fuLure sLraLegles"
As Lhe compeLlLlve envlronmenL conLlnues Lo grow companles are
flndlng lL more dlfflculL Lo manage Lhe flow of resources Lechnologles
lnformaLlon and capablllLles
Lhls lssue
AdvanLages of SLraLeglc Alllances
lC88LSCCM
A lorbescom arLlcle enLlLled arLner
or erlsh" hlghllghLs a number of
corporaLlons prevlously lnvolved ln
sLraLeglc alllances and dlscusses Lhls
Lrend's llnk Lo lmprove producLlvlLy ln a
global markeL oslLlve lmpacLs are
noLed from glanLs llke Coca Cola and
rocLor Camble Sony and Lrlckson
l8M flzer and 8LA SysLems Lll Lllly
and oLhers 8ead more

lC88LS MACnL1lC 40
1akes an lndepLh look aL more Lhan
10000 alllances formed ln 2000 by
lndusLry lorbes explores a varleLy of
parLnershlps from comarkeLlng or
llcenslng Lo [olnL venLures and 8u
8ead more



SLraLeglc Alllances
Alllances come ln dlfferenL shapes and slzes
MlC8CSCl1 Anu nC81LL
ln 2006 MlcrosofL CLC SLeve 8allmer
and norLel resldenL CLC Mlke
Zafrlrovskl announced a sLraLeglc
alllance beLween Lhe Lwo companles
LhaL would llnk communlcaLlons (emall
lnsLanL messaglng mulLlmedla
conferenclng) poslLlonlng boLh
organlzaLlons Lo drlve growLh reduce
cosLs slmpllfy communlcaLlons for
cusLomers and lmprove efflclencles
(MlcrosofL 2011)
CCCA CCLA Anu 8CC1C8
CAM8LL
Slnce 2001 Lhe beverage glanL focused
on global sLraLeglc plannlng alllances
and new venLures whlch spurred lLs
Leamlng wlLh C Lo uLlllze Lhe
company's lmpresslve research
capablllLles whlle C galned access Lo
Coke's exLenslve dlsLrlbuLlon neLwork
(lorbes MagneLlc 40 2001)
LLl LlLL? Anu 8CLP8lnCL8
lnCLLPLlM
ln !anuary 2011 Lll Lllly and Cerman
owned 8oehrlnger lngelhelm
announced a sLraLeglc alllance Lo
furLher advance Lhelr plpellne of
dlabeLes pharmaceuLlcals as Lhey geL
closer Lo loslng paLenLs excluslvlLy 1hls
unlon wlll poslLlon boLh organlzaLlons
Lo expand Lhelr offerlngs sLrengLhen
dlabeLes care and lncrease revenue
opporLunlLles (Lllly 2011)
SAMSunC Anu
u8LAMWC8kS AnlMA1lCn
Samsung and ureamworks Leamed up
ln !anuary 2011 Lo expand Lhelr
alllance As a leadlng lnnovaLor of 3u
enLerLalnmenL ureamworks wlll [oln
forces wlLh Samsung Lo markeL lLs 3u
Lelevlslon along wlLh some excluslve
ureamworks 3u bluray movle LlLles
1he companles wlll work [olnLly Lo
examlne 8u opporLunlLles and
develop comarkeLlng plans (Samsung
uSA 2011)

SLraLeglc alllances slmply allow
companles Lo become beLLer
LogeLher Lhan Lhey are alone
Managed properly Lhe beneflLs of
Lhese unlons can dramaLlcally
lmprove a company's performance
mlnlmlze Lhe dlfflculLles assoclaLed
wlLh overall operaLlons and
Lechnology and lncrease Lhelr
flexlblllLy
Alllances can develop ln several
forms buL are generally classlfled as
Lradlng funcLlonal or dynamlc A
Lradlng alllance ls baslcally a
conLracLual agreemenL beLween
buyers and sellers esLabllshlng large
sales and dlsLrlbuLlon
arrangemenLs A funcLlonal alllance
ls deslgned Lo meeL speclflc goals
for example lmprovlng research
and developmenL dlvldlng cosLs
lncreaslng sales or expandlng access
lnLo new markeLs uynamlc
alllances encompass obscure
capablllLles boLh organlzaLlons
possess LhaL conLrlbuLes Lo lLs
sLrengLh ln Lhe markeL (Co[oharl
nd)
1he key argumenL for sLraLeglc
alllances ls compeLlLlveadvanLage
1he developmenL of Lhese
relaLlonshlps are a common
sLraLegy ln Lhe global markeL
Some beneflLs are (Zarlfl 2008)
Calnlng capablllLles offers an
opporLunlLy Lo galn knowledge
and experLlse ln areas LhaL your
organlzaLlon may lack
Lasler access Lo LargeL markeLs
allows enLry lnLo markeLs aL
poLenLlally lower cosLs offerlng
opporLunlLles Lo compeLe ln
hlghly compeLlLlve markeLs by
lessenlng Lhe lmpacL of
governmenL regulaLlons
operaLlonal dlfflculLles and
compeLlLor obsLacles
Sharlng flnanclal rlsks share
organlzaLlonal cosLs Lo reduce
rlsks
Wlnnlng Lhe pollLlcal obsLacle
enLerlng lnLernaLlonal markeLs
may have pollLlcal resLrlcLlons
however esLabllshlng [olnL
venLures wlLh local organlzaLlons
would allow forelgn buslnesses
Lo access Lhese local markeLs
Synergy and compeLlLlve
advanLage [olnL venLures
creaLe opporLunlLles for
buslnesses Lo comblne sLrengLhs
Lo help each oLher achleve beLLer
resulLs







8eferences
Co[oharl n (nd) 1he compeLlLlve advanLage of sLraLeglc alllances 8eLrleved Aprll 13
2011 from hLLp//wwwupmro/prolecLe/LLL/Conferences/papers/S421pdf
lorbes MagneLlc 40 (2001) 8eLrleved on Aprll 13 2011 from
hLLp//wwwforbescom/besL/2001/0321/064hLml

Lllly (2011) Llly and boehrlnger lngelhelm announce sLraLeglc alllance Lo brlng new
dlabeLes LreaLmenLs Lo paLlenLs worldwlde 8eLrleved Aprll 16 2011 from
hLLps//lnvesLorllllycom/releasedeLall2cfm?8eleaselu342971

MlcrosofL (2011) 8eLrleved Aprll 13 2011 from
hLLp//wwwmlcrosofLcom/presspass/press/2006/[ul06/07
18uCCnorLel8mspx

Samsung uSA (2011) Samsung and dreamworks anlmaLlon expand sLraLeglc alllance
for more lmmerslve 3u Lv vlewlng experlence ln 2011 8eLrleved Aprll 16 2011
from hLLp//wwwsamsungusanewscom/2011/01/samsunganddreamworks
anlmaLlonexpandsLraLeglcalllanceformorelmmerslve3dLvvlewlng
experlenceln2011/

Zarlfl M (2008) llve poLenLlal beneflLs of sLraLeglc alllance 8eLrleved Aprll 13 2011 from
hLLp//lnfoskywordpresscom/2007/03/06/flvepoLenLlalbeneflLsofsLraLeglc
alllance/



8LlL8LnCLS

Strateg|c Cperat|ona|
|ann|ng
ISSUL 1 AkIL 2011
undersLandlng CrganlzaLlonal
Alllances
Aprll 13 2011