The scope of strategi alliances
Comprehensive Alliances
comprehensive alliances arise when the participating firma agree to perform together multiple stages of the process by the process by which goods or service are brought to the market: R&D, design, production, marketing and distributors. because of the broad scope of such alliances, the firms must establish procedurs for meshing such functional areas as finance, production, and marketing for the alliance to succeed. Yet intergrating the different operating procedurs of the parents over a broad range of functional activities is difficult in the absence of a formal organizational structure. As a result, most comprehensive alliances are organized as joint ventures. as an independent entity, the joint venture can adopt operating procedure that suit its specific needs, rather than attempting to accomodation tha often incompatible procedure of the parents, as might be the case with anothe type of strategic alliances.
Functional Alliances
PRODUCTION ALLIANCES. A production alliance is a fuctional alliance in which two or more firm each manufacture products or provide services in a shared or common facility. A production alliances may utilize a facility one partner already owns. For examples, as we discussed earlier, the NUMMI joint venture between Toyota and GM is housed in a formee GM assembly plant in carlifornia , which the company had closed down. Alternatively, the partners may choose to build a new plan , as is the case for a new $3.5 billion joint venture between sony and Sharp to manufacture liquid crystal display panels for high-definition television in western Japan.
MARKETING ALLIANCES. A Marketing alliances is a functional alliances in which two or more firm share marketing services or expertise. in most cases, one partner introducers its products or services into a market in which the other partner already has a presence. The establish firm help the newcomer by promoting, advertising, and/or distributing its products or services.
FINANCIAL ALLIANCES. A financial alliances is a functional alliance of firm that want to reduce the financial risks associated with a project. Partners may share equally in contributing financial resources to the roject, or one partner may contibute the bulk of the financial while the other partner provides special expertise or makes other kinds of contributions to partially offset its lack of financial investment. tha strategic alliance between Boeing and its three japanese partners was created primarily for financial purpose - Boeing wanted the other firm to help cover R&D and manufacturing costs. those firm, in turn, saw a chance to gain valuable experience in commercial aircraft manufacturing as well as profits. And 20th Century Fox and Paramount Pictures were financial allies in producing Titanic, one of the most succesful movies in history
RESEARCH AND DEVELOPMENT ALLIANCES
Rapid technological change in high-technology industries and the skyrocketing cost of staying abreast of that change have prompted an increase in functional alliances that focuses on R&D. in an R&D alliances, the partners agree to undertake joint research to develop new product or services. an example of a typical R&D alliances is one formed in 2000 among intel, micron Technology, Samsung, Hyundai, NEC, and Siemens to develop the next generation of DRAM chips. Similarly, Bayer AG formed R&D alliances with smaller biotechnology companies like Millenium Pharmaceutical an Morphosys to strengthen their joint search for new miracle drugs.
Functional Alliances
PRODUCTION ALLIANCES. A production alliance is a fuctional alliance in which two or more firm each manufacture products or provide services in a shared or common facility. A production alliances may utilize a facility one partner already owns. For examples, as we discussed earlier, the NUMMI joint venture between Toyota and GM is housed in a formee GM assembly plant in carlifornia , which the company had closed down. Alternatively, the partners may choose to build a new plan , as is the case for a new $3.5 billion joint venture between sony and Sharp to manufacture liquid crystal display panels for high-definition television in western Japan.
MARKETING ALLIANCES. A Marketing alliances is a functional alliances in which two or more firm share marketing services or expertise. in most cases, one partner introducers its products or services into a market in which the other partner already has a presence. The establish firm help the newcomer by promoting, advertising, and/or distributing its products or services.
FINANCIAL ALLIANCES. A financial alliances is a functional alliance of firm that want to reduce the financial risks associated with a project. Partners may share equally in contributing financial resources to the roject, or one partner may contibute the bulk of the financial while the other partner provides special expertise or makes other kinds of contributions to partially offset its lack of financial investment. tha strategic alliance between Boeing and its three japanese partners was created primarily for financial purpose - Boeing wanted the other firm to help cover R&D and manufacturing costs. those firm, in turn, saw a chance to gain valuable experience in commercial aircraft manufacturing as well as profits. And 20th Century Fox and Paramount Pictures were financial allies in producing Titanic, one of the most succesful movies in history
RESEARCH AND DEVELOPMENT ALLIANCES
Rapid technological change in high-technology industries and the skyrocketing cost of staying abreast of that change have prompted an increase in functional alliances that focuses on R&D. in an R&D alliances, the partners agree to undertake joint research to develop new product or services. an example of a typical R&D alliances is one formed in 2000 among intel, micron Technology, Samsung, Hyundai, NEC, and Siemens to develop the next generation of DRAM chips. Similarly, Bayer AG formed R&D alliances with smaller biotechnology companies like Millenium Pharmaceutical an Morphosys to strengthen their joint search for new miracle drugs.
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