How to Manage Alliances Better Than One at a Time Harvard Case Solution & Analysis

Companies surprisingly blunt, the authors say, when it comes to the formation of new alliances. As often happens, the business unit will form a partnership that serves as a parochial interests. Too often, however, the value of such alliances add to the business unit level negated by damage due to the incompatibility of the new alliance with existing ones. Forming partnerships with the company, which is the main competitor of the existing partner, for example, can create such an evil will, which leads to the destruction of the total value of the company. The solution, according to the authors, is to structure and process: Companies should establish a central "Alliance function"-individual or corporate-level department, which is charged with overseeing and coordinating the formation of new alliances. And the decision to enter into the proposed alliance should be subject to a rigorous set of analytical steps, in which the company is considering the costs and benefits of the proposed alliance, not only for the business unit that is directly involved, but for the whole company. "Hide
by Ulrich Wassmer, Pierre Dussauge, Marcel Planellas Source: MIT Sloan Management Review 10 pages. Publication Date: April 1, 2010. Prod. #: SMR349-PDF-ENG

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