on Strategic Alliances
Enterprise: Breakout Strategies for the New Millennium (2000)
Strategic alliances are sweeping through nearly every
industry and are becoming an essential driver of superior growth. The value
of alliances is estimated to range between $30 trillion to $50 trillion
within five years. Peter F. Drucker has said that there is not just a surge
in alliances but "a worldwide restructuring" is occurring in the
shape of alliances and partnerships.
Recent surveys by Booz Allen have revealed:
? More than 20% of the revenue generated from the
top 2,000 U.S. and European companies now comes from alliances with
more predicted in the near future.
? These same companies earn higher ROIs and ROEs
on their alliances than from their core businesses.
? Leading edge alliance companies are grouping
alliances in a concentrated manner thus creating a string of
interconnected relationships to rapidly over power the competition.
? The traditional "Command and Control" Organizational
Model is inadequate to manage the complex set of relationships
forming outside the direct control of the corporation.
Why is a New Organizational Model called for? What does
it look like? How does it work? How does it differ from the traditional
command and control organizational model, which has worked so well up to
This Viewpoint addresses these questions, and covers:
? The Five Driving Forces Behind Alliances
? The Three Alliance Modes
- Filling Single and Multiple Gap Deficiencies
- Creating Integrated Products and Services
- Forming a Breakout Offering
? Four "Pure Tone" Alliance Models
- Franchise Model: Deep Bench Strength
- Portfolio Model: Hub and Spoke
- Cooperative Model: Mutual
- Constellation Model:
Integrated Service Offering