Marketing pres
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Marketing pres






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Marketing pres Marketing pres Presentation Transcript

  • Cross-Border Collaboration
    Managing across Corporate Boundaries
  • The Bigger, the Better
    Companies desire multi-dimensionality
    Expanding internationally allows bigger business
    Must be able to manage assets and resources
    Costs and risks associated with managing internationally
  • Roles of Management
    Protect profits from competitors or bargain power
    Strong control over firm’s activities
    Develop interdependent and integrated network within company
    External relationships with other firms, customers,etc.
    Caused by rising costs, shortened product life, barriers to entry
  • Friendly Competition?
    Strategic Alliances
    Companies that were once strict competitors have now allied
    AT&T and Toshiba
    Traditional alliance
    MNE in industrialized corporation joint ventures with junior local partner in less-developed country
    New alliances can be between two industrialized countries
    Motivation for Strategic Alliances are technology exchange, global competition, industry convergence, economies of scale, and alliances as alternative to merger
  • Partners can pool resources and concentrate activities to raise the scale of activity or rate of learning
    Alliances share and leverage strengths
    Trading saves high cost of duplication
    Risk-hedging since none of the participating firms bears the full risk
  • Lomptit bloc onigea
    Form alliances to compete with other international companies of similar size
    Evens out playing field
    Symbian alliance of psion, Eericsson, Nokia, Matsushita, and Motorola created as response to Microsoft’s entry into PDA market.
  • StarAlliance and OneWorld are airline alliances formed to avoid merging into one company
    Created because rules against foreign ownership
    When rules lifted, mergers are created
    Alliances like Concert and Unisource created Worldcom, France Telecom and Deutsche Telekom
  • ???
    Speeds up communication
    Breaks boundaries between industries
    Increases R&D technology
    IT, electronics, pharmaceuticals,, specialty chemicals
    Material supplies team up with auto companies to transfer and adapt to market
    GEC trasferred Ford Xenoy bumper technology from Europe to U.S.
  • Producers of computers and telecommunications are merging
    Biological and chip technologies intersecting
    Develop the complex and interdisciplinary skills necessary in the time frame required
  • Era of Alliance “Euphoria”
    1980s fueled concepts of triad power and stick-to-your-knitting
    Triad power emphasized developing significant positions in U.S., western Europe, and Japan
    Focus investments, efforts, and attention on only those tasks they have significant competitive advantage
    Outsource or use alliances for other tasks
  • Risks of Competitive Collaboration
    Risk could be that one of the partners will learn and internalize other’s skill while protecting its own
    Ajinomoto Japanese food giant allied with General Foods
    Also capturing investment initiative to use the partnership to erode other’s position
    Possibility that alliance breaks, one partner is made stronger
  • Strategic and Organizational Complexity
    International partnerships represent a mix of different economic, political, social and cultural systems
    Creates organizational challenge
    Xerox and Fuji Xerox (Japan)
  • Building Cooperative Ventures
    Partner Selection: Strategic and Organizational Analysis
    Availability of partner
    Tangible assets
    Time and distance
    Strategic capabilities
    Ongoing process. “Thrill of the Chase”
    People are different after the chase is over
    Strategic capabilities
    Simplicity and Flexibility
  • Managing Cooperative Ventures
    Managing the Boundary
    Start with limited agreement?
    Always easier to expand
    Managing Knowledge
    Must prevent outflow of any info or knowledge they don’t want partners to know
    Well versed in organizational processes
    Personal credibility
    Governing Structure
    If partners are equal, hard to achieve anything
  • Conclusion
    Alliances don’t have to be permanent
    Flexibility is important
    Always learn