Marketing pres


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Marketing pres

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