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Alliance Strategy

By
Ms.Valiaporn L. ID 4880579
Ms.Pimpug C. ID 4980021
Mr.Tatiya W. ID 4980026
Ms.Tarika R. ID 4980122
Ms.Chutinan T. ID 4980682

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

The Four Elements of Alliance
strategy
3. Alliance Constellation
A constellation is the collection of alliance.
The concept of competition has changed
from firm against firm to group against
group.
A poorly designed and managed
constellation can lead to the conflict among
the alliance
To be able to designing and managing
constellation, it requires decisions,
capabilities, and structures
The Four Elements of Alliance
strategy
4. Alliance Capability
The firm need a support from internal
infrastructure to be able to be successful in
external 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
depends on the firms objective and
strategic circumstances.
The Arc of Alliance Strategy
It represents the overall view of what it
takes to be able to succeed with
alliances

Its 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
(Cont)
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
THANK YOU FOR YOUR
ATTENTION

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