Alliances come in several forms, and include arrangements such as distributorship agreements, technology sharing and licence arrangements, joint ventures and shared buying groups. The objectives of parties in entering into an alliance are furtherance of their individual objectives, and alliances may continue to exist only for as long as they continue to bring benefit. Alliances may be tactical in nature, as when two companies come together to form a consortium to bid for a large project, or they may be strategic, designed to be in place for a longer, perhaps indeterminate, timescale. Small companies can be motivated to enter into alliances with larger companies to exploit the distribution channels offered by the larger partner, and larger companies may seek to draw smaller companies into alliances to gain access to unique technology or other strengths. Alliances may be formed for market development purposes or for defensive purposes. The company repelling an attack from a newcomer will seek to control potential partners in a wide range of areas, from suppliers to downstream distribution channels, to other potential partners offering complementary services. Understanding the true motivation behind those seeking alliances is thus important.
Alliances, Page 1 of 2
< Previous page Next page > /docserver/preview/fulltext/books/mt/pbmt018e/PBMT018E_ch7-1.gif /docserver/preview/fulltext/books/mt/pbmt018e/PBMT018E_ch7-2.gif