The Alliance Revolution

The Alliance Revolution The New Shape of Business RivalryIntroduction • More than we ever anticipated, alliances among firms are changing the way business is conducted.Introduction • The reasons are clear, companies must improve their outcomes and performance in an ever more complex and rapidly changing businesses. Important • And one of the best alternatives to succeed in this new world is to establish alliances and other kind of contribution systems to overcome the main market barriers.Alliance -Definition • A close association of nations or other groups, formed to advance common interests or causes. • A formal agreement establishing such an association, especially an international treaty of friendship.Alliance -Benefits • It creates new units of competition. • The flexible capabilities of these alliances can give advantages over main competitors. • It can strengthen a firm's competitive advantage and narrow the gap between leading firms and second-tier players. Alliance -Downsides • The establishment of Trust Organizations. (Keiretsu) • Different Long Term Strategies. • Disagreements. • Big level of business/technology exposure (Know-how Share). • Knowledge flow. • Management Problems.Alliance -Conclusion • Alliances are important tools for any company to achieve new positions inside the market place. • But it is a dangerous path that a company should know how to lead, to avoid its own destruction.Lico Reis Consultoria & Línguas Prof. Roberto Lico Reis www.licoreis.com licoreis@licoreis.com E-books: www.migre.me/oQ5 Linkedin: www.migre.me/1d9r Twitter: Licoreis