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M&A, Alliances and Corporate
Strategy (MAACS)
Session 14
Philipp Meyer-Doyle
INSAD
Agenda !or "oday
I# "heory$ Strategic Alliances - Design and Manage%ent
II# Case$ &ena'lt(Nissan Alliance
III# )rap-'p
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Strategic Alliances - Design and Manage%ent
I# )hat is a strategic alliance-
A strategic alliance is a colla.oration .et/een t/o !ir%s
that retain strategic a'tono%y /hile co%%itting
reso'rces to 0oint acti1ities#
Strategic alliances are te%porary
A.o't hal! o! all alliances ter%inate /ithin 2 years
*(1+(*,14 4
FirmB
Alliance Specific objectives
of Firm A
Specific objectives
of Firm B
Limited common objectives
FirmA
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I# )hen are alliances 1ia.le-
Strategic co%ple%entarity
Synergies (see 4C !ra%e/or3)
Co%pati.ility o! partners4 goals
De!ined(li%ited scope o! colla.oration
5oth partners .ene!it relati1ely
6i%ited asy%%etric appropria.ility o! strategic
reso'rces
tc#
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I# "ypes o! alliances
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9ir% A 9ir% 5
Prod'ct Prod'ct
Scale alliance
Shared supply
Complementary alliance
Prod'ct
Quasi-concentration
Prod'ct
9ir%A 9ir%5
So'rce$ D'ssa'ge and :arrette, 1;;;
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I# Scale alliance$ shared s'pply
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9ir% A 9ir% 5
Prod'ct Prod'ct
Shared supply
Benefits
Pitfalls
So'rce$ D'ssa'ge and :arrette, 1;;;
I# Scale alliance$ <'asi-concentration
*(1+(*,14 =
Benefits
Pitfalls
Quasi-concentration
Prod'ct
9ir%A 9ir%5
So'rce$ D'ssa'ge and :arrette, 1;;;
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I# Scale alliance, <'asi-concentration
>a%ple$ Air.'s
*(1+(*,14 ;
Air.'s
A+,,(+1,
(1;24)
Air.'s
A+*,
(1;=4)
Air.'s
A++,(A+4,
(1;;+)
Aerospatiale-Matra (9&) 1 ? 7 1 ? 7 1 ? 7
5A (@A) + + +
DASA (:er%any) * * *
CASA (Spain) 4 4 4
7$ 9inal Asse%.ly
+
+
*
1
4
4
I# >a%ple$ Air.'s
*(1+(*,14 1,
Air.'s
A+,,(+1,
Air.'s
A+*,
Air.'s
A++,(A+4,
Air.'s
A+1;(A+*1
A"&
&egional
5A 148
Aerospatiale-Matra (9&) 1 ? 7 1 ? 7 1 ? 7 1 ? * *?+?7
5A (@A) + + + + 1?*?+?4?7
DASA (:er%any) * * * * ? 7
CASA (Spain) 4 4 4 4
Alenia (contractor) 1?4
7$ 9inal Asse%.ly
+
+
*
1
4
4
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I# >a%ple$ Air.'s
*(1+(*,14 11
Air.'s
A+,,(+1,
(1;24)
Air.'s
A+*,
(1;=4)
Air.'s
A++,(A+4,
(1;;+)
Air.'s
A+1;(A+*1
(1;;7)
Air.'s
A+=,
(*,,,)
Aerospatiale-Matra (9&) 1 ? 7 1 ? 7 1 ? 7 1 ? * 1 ? 7
5A (@A) + + + + +
DASA (:er%any) * * * * ? 7 *
CASA (Spain) 4 4 4 4 4
7$ 9inal Asse%.ly
+
+
*
1
4
4
Co%ple%entary
I# Co%ple%entary alliance
*(1+(*,14 1*
Benefits
Pitfalls
So'rce$ D'ssa'ge and :arrette, 1;;;
Prod'ct
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I# Alliance design
*(1+(*,14 1+
Scope & alue Chain
Task division
Partner !oles"#nputs
Task allocation
Profits"!eturn
Distribution of rewards
#nterface
Structure and Communication
I# "as3 di1ision
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I# "as3 allocation
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I# Distri.'tion o! re/ards
*(1+(*,14 18
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I# Str'ct're and co%%'nication
*(1+(*,14 12
I# Managing pit!alls(pro.le%s
*(1+(*,14 1=
Complementary
$iver%in%
partner needs
#nertia
Alliance type Pitfalls Actions
Quasi-concentration
&ar'etin%
or%anisation
Specialisation
S'ill lea'a%e
!ace to learn
!eor%ani(e
)erminate if only aim is to
share investment
Capture partner *s s'ills
Protect 'ey assets
+oint or split mar'etin%
!otate tas' allocation
)erminate
Shared supply
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&ena'lt Nissan Alliance
II# Alliance %oti1ations
*(1+(*,14 *,
)hy does Nissan /ant to enter into the alliance-
)hy does &ena'lt /ant to enter into the alliance-
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II# &ena'lt Nissan alliance design
*(1+(*,14 *1
Bo/ is the alliance designed and %anaged-
II# &ena'lt-Nissan alliance poll
*(1+(*,14 **
)ho is the %ain net .ene!iciary !ro% the alliance-
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II# Alliance s'ccess
*(1+(*,14 *+
)hy is the &ena'lt-Nissan alliance so s'ccess!'l-
II# Carlos :hosn$ A re%ar3a.le t'rnaro'nd %anager
*(1+(*,14 *4
M'lti-c'lt'ral .ac3gro'nd and 'p.ringing
ngineering degree !ro% cole de Mines
&estr'ct'res Michelin4s North A%erican operations
Does not get the CC 0o. at Michelin /hich goes to yo'ng Michelin
heir
Bired .y Sch/eitDer in order to t'rn aro'nd &ena'lt
Bas .eco%e CC o! .oth &ena'lt and Nissan
)idely regarded as one o! the %ost capa.le %anagers in the
a'to%o.ile ind'stry
EI! I didn4t ha1e Mr# :hosn, I /o'ld ha1e not done the deal /ith
NissanF (Sch/eitDer, &ena'lt)
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III# )rap-'p and "a3e-a/ays###
Strategic alliances
"e%poral character
)hen are they 1ia.le-
"ypes o! alliances
Scale alliances
Shared s'pply
G'asi-concentration
Co%ple%entary alliances
Alliance design
"as3 di1ision
"as3 allocation
Pro!it sharing
Str'ct're(co%%'nication
Alliance %anage%ent
Dedicated alliance !'nction
Alliance %anage%ent cycle
Managing conse<'ences, pro.le%s and pit!alls
*(1+(*,14 *7
Ne>t ti%eH#
Ioint-Jent'res( &ene/al( %erging Mar3ets
Case$ Bero-Bonda IJ
Cther &eadings
Ans/er 9inal Poll
*(1+(*,14 *8