The Role of Alliances in Corporate Strategy

The Role of Alliances in Corporate Strategy

          
Article image

The Role of Alliances in Corporate Strategy

  • Add To Interests
  • SAVE CONTENT
  • PRINT
  • PDF

  • Related Articles
    In This Article
    • To create successful alliances, a company must recognize when they make strategic sense—and when they do not.
    • Alliances differ significantly from M&A—and need to be managed differently.
      .
    • A ten-point CEO alliance checklist captures the key arguments and recommendations of this report in a concise, easy-to-use format.
     

    Alliances have become an increasingly important—and complex—part of corporate strategy. The last two decades of the twentieth century witnessed explosive growth in corporate partnering. According to one estimate, approximately 35 percent of global corporate revenues in 2002 were a direct result of alliances—up from only 2 percent in 1980. Clearly, alliances have become an integral part of the corporate-finance and corporate-development tool kit.

    The economic downturn following the bursting of the Internet bubble of the late 1990s caused the number of new alliances created worldwide each year to decline precipitously. Nevertheless, alliances remain central to competitive advantage in key sectors of the global economy, such as telecommunications and pharmaceuticals.

    As more and more companies shift their attention to growth after a period of consolidation and restructuring, it’s likely that the upward swing in alliances will resume again. This is a trend that has already begun in some regions of the world.

    In order to create successful alliances, however, a company must know when an alliance is appropriate and when it is not.

    To Contact the Authors
  • Add To Interests
  • SAVE CONTENT
  • PRINT
  • PDF