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 Marketing Management Chapter 9 / 2 Keegan:Global

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(MS GC

OM)
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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