Strategic Alliances Xiaohong Pang Automation Department Shanghai Jiaotong University
Strategic Alliances Xiaohong Pang Automation Department Shanghai Jiaotong University
Lecture Outline Introduction A Framework for Strategic Alliances Third-Party Logistics Retailer-Supplier Partnerships
Lecture Outline Introduction A Framework for Strategic Alliances Third-Party Logistics Retailer-Supplier Partnerships
One Paradox One of the paradoxes of business today Complex business practices are becoming essential for firms to survive and thrive Necessary financial and managerial resources are becoming increasingly scarce
One Paradox One of the paradoxes of business today Complex business practices are becoming essential for firms to survive and thrive Necessary financial and managerial resources are becoming increasingly scarce
An Important Observation It may not always be effective to perform all of these key business functions in- house. Frequently,a company may find it effective to use other firms with special resources and technical knowledge to perform these functions. Often a combination of position in the supply chain,resources, and expertise determines the most appropriate firm in the supply chain to perform a particular function
An Important Observation It may not always be effective to perform all of these key business functions inhouse. Frequently, a company may find it effective to use other firms with special resources and technical knowledge to perform these functions. Often a combination of position in the supply chain, resources, and expertise determines the most appropriate firm in the supply chain to perform a particular function
Ways for Performing a Logistics Function There are four basic ways for a firm to ensure that a logistics related business function is completed. ■Internal activities Resources and expertise available,core strengths ■Acquisitions Drawbacks:expensive,culture clashing,effectiveness losing,business losing,and so on Arm's-length transactions Short-term arrangement,for a particular business need Strategic alliances Arm's length transaction公平交易，正常交易
Ways for Performing a Logistics Function There are four basic ways for a firm to ensure that a logistics related business function is completed. Internal activities Resources and expertise available, core strengths Acquisitions Drawbacks: expensive, culture clashing, effectiveness losing, business losing, and so on Arm’s-length transactions Short-term arrangement, for a particular business need Strategic alliances Arm’s length transaction 公平交易，正常交易
What are Strategic Alliances Strategic alliances are typically multifaceted,goal-oriented,long-term partnerships between two companies in which both risks and rewards are shared. Strategic alliances typically lead to long- term strategic benefits for both partners Mutual goals lead to the commitment of much more resources The problems of outright acquisition can be avoided. Multifaceted:多方位的
What are Strategic Alliances Strategic alliances are typically multifaceted, goal-oriented, long-term partnerships between two companies in which both risks and rewards are shared. Strategic alliances typically lead to longterm strategic benefits for both partners Mutual goals lead to the commitment of much more resources Multifaceted：多方位的 The problems of outright acquisition can be avoided
Strategic Alliance Example The Ford Festiva New car design in America Engines from Japan Mazda Parts and assembly in Korea Sales all over the world Design Engines Parts and Assembling Sales
Strategic Alliance Example The Ford Festiva New car design in America Engines from Japan Mazda Parts and assembly in Korea Sales all over the world Design Engines Parts and Assembling Sales
Example 8-1 Take 2 min.to read example 8-1,consider the questions below. 7. What is the relationship between IBM, Intel and Microsoft 2. How IBM benefited and were hurt by the relationships 3. What are the possible drawbacks of strategic alliances
1. What is the relationship between IBM, Intel and Microsoft ? 2. How IBM benefited and were hurt by the relationships ? 3. What are the possible drawbacks of strategic alliances ? Example 8-1 Take 2 min. to read example 8-1， consider the questions below
Drawbacks of Strategic Alliances Strategic alliances have their downsides: Core strengths may be weakened A firm's core strengths make it different from its competitors. Key differences with competitors may be diminished IBM and Compaq
Strategic alliances have their downsides: Core strengths may be weakened Key differences with competitors may be diminished IBM and Compaq Drawbacks of Strategic Alliances A firm’s core strengths make it different from its competitors
What are Your Core Strengths Determining core strengths is very important,unfortunately,it is also very difficult. What they are depends on the nature of the business and of the firm. Core strengths don't necessarily correspond to large investment of resources They may be intangible items -Such as management skills,brand image
What are Your Core Strengths Determining core strengths is very important, unfortunately, it is also very difficult. What they are depends on the nature of the business and of the firm. Core strengths don’t necessarily correspond to large investment of resources They may be intangible items Such as management skills, brand image