IBM’s Global Alliance Strategy CASE 2 The Global Airline Industry Introduction Factors Promoting the Rise of Strategic Alliances New Market Entry Shaping of Industry Evolution Learning and Applying New Technologies Rounding Out the Product Line Types and Benefits of Strategic Alliances Licensing Arrangements Joint Ventures Cross-Holdings, Equity Stakes, and Consortia Risks and Costs of Alliances Rising Incompatibility of Partners Risk of Knowledge/Skill Drain Risk of Dependence Cost of Alliance Control and Operations Balancing Cooperation and Competition Understand the Firm’s Knowledge and Skill Base Choose Complementary Partners Keep Alliance Personnel Long Term Ethical Dimension Collaboration and Competition in Alliances Alliance. | strategie management Strategic Alliances Teaming and Allying for Advantage CHAPTER OUTLINE CASE 1 IBM s Global Alliance Strategy CASE 2 The Global Airline Industry Introduction Factors Promoting the Rise of Strategic Alliances New Market Entry Shaping of Industry Evolution Learning and Applying New Technologies Rounding Out the Product Line Types and Benefits of Strategic Alliances Licensing Arrangements Joint Ventures Cross-Holdings Equity Stakes and Consortia Risks and Costs of Alliances Rising Incompatibility of Partners Risk of Knowledge Skill Drain Risk of Dependence Cost of Alliance Control and Operations Balancing Cooperation and Competition Understand the Firm s Knowledge and Skill Base Choose Complementary Partners Keep Alliance Personnel Long Term Ethical Dimension Collaboration and Competition in Alliances Alliance Personnel Issues Summary Exercises and Discussion Questions WHAT YOU WILL LEARN The characteristics of a strategic alliance Why companies around the world are forming strategic alliances The different types of strategic alliances including licensing joint ventures and multipartner consortia The benefits and costs of entering into strategic alliances How to balance the need for cooperation with competition 257 258 PART 2 Extending Competitive Advantage Case 1 IBM s Global Alliance Strategy1 Throughout the 1990s International Business Machines IBM the world s largest computer company entered into a wide array of strategic alliances with numerous partners in the United States the Far East and Europe. The very notion that IBM would enter into joint ventures with such global behemoths as Toshiba Motorola and Siemens revealed just how much IBM had changed. Even more compelling in recent years is IBM s rapid deployment of alliances with a host of smaller players across an array of different industries such as telecommunications banking software entertainment multimedia and even consumer electronics and broadcasting. Through much of the 1980s both .
