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By Pierre Dussauge Bernard Garrette

Cooperative approach Competing effectively via Strategic Alliances Pierre Dussauge and Bernard Garrette HEC-School of administration, France in recent times, such company giants as Boeing, Toyota, Nestl?, Philips, United airways, IBM, and Intel have more and more became to alliances on the way to enhance new items and applied sciences, input new markets, and globalize their actions. certainly, not anyone enterprise, in spite of the fact that dominant, can beat the contest solely by itself. regrettably, managers have came upon collaboration to be a tough, and infrequently harmful, method; they've got frequently over-estimated the advantages of alliances whereas overlooking their pitfalls which merely materialize through the years. C.K. Prahalad notes within the foreword that "managers want a strong framework for navigating via those uncharted waters" and that "this ebook offers a useful resource of principles and useful tips of their search". because the dynamics of the company panorama swap and alliances turn into an more and more used aggressive weapon, Cooperative approach will permit managers to plot, enforce and make the simplest use of strategic alliances. "This ebook considerably advances the literature on strategic alliances. The case experiences are clean and the insights they supply are robust. This e-book is a needs to learn for either managers and lecturers drawn to cooperative strategies." Nitin Nohria, Professor of industrial management, Harvard enterprise university "This ebook presents a good consultant to the hot abilities wanted in an atmosphere the place increasingly more managers needs to learn how to collaborate so one can increase the aggressive place in their corporation. No-one can turn into an international chief alone." John M. Stopford, Professor of overseas enterprise, London enterprise tuition "The framework constructed by means of Pierre Dussauge and Bernard Garrette presents new and precious insights at the strategic and managerial matters raised through alliances, particularly while those alliances compile businesses that compete within the comparable industries. certainly, getting former rivals to collaborate successfully is a tough endeavour; this e-book bargains managers directions that might make this problem much less daunting." Jean-Luc Lagard?re, CEO, Matra-Hachette "This first-class e-book offers insightful readability at the a variety of sorts of alliances and effectively explores the problems, pitfalls and traps which ensnare the misinformed. The examples are wealthy and the point of view actually international. particularly, it disentangles the extra inventive kinds of 'co-opetition' among rival companies, and lays out the long run results of alliances. it really is pragmatic and functional, bristling with concrete feedback on the best way to make alliances successful." Bruce Simpson, valuable, McKinsey&Company

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However, if the trend towards globalization is obvious for many productcategories, it does not affectall industriesto thesame extent. Alongside truly global industries, multidomestic businesses continue to exist;for such businesses, adapting t o the local context is more important than standardizing internationally. Cooperation can also prove effective for this purpose, although its rationale is quite different. In this case,the objective is no longer to pool resources to produce global products and diffuse them worldwide as rapidly and extensively as possible, but to leverage the complementary capabilities of partner firms originating from different parts o f the world in order to offer products and services adapted to the different geographic regions.

Indeed, cooperating enables partner firms in an alliance to combine a widerange of different and complementaly capabilities (Doz and Harnel, 1998). The example of the automobile industry is particularly significant. Although before the Second World War, a firm like General Motors could possess in-house all the different technologies and skills required to build its cars, the sophistication of modern vehicles is such that manufacturers can no longer rely exclusively on their own capabilities. This is why automobile manufacturers are forging new industrial repationships with their subcontractors and parts suppliers and, through this process, are increasingly becoming automobile designers and assemblers.

Indeed, because NLTMMI was not an integral part of General Motors, nor of Toyota for that matter, and was not a stand-alone operation either, they werelikely to be torn between contradictory loyalties. In their day-to-day work, some may have felt that they had to protect the interests of the parent company they came from, while othersmay have wanted to serve the best interests of the joint venture itself; some may even have considered that their primary function was to keep theGM-Toyota relationship as smooth and harmonious as possible.

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