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Alliance and Acquisition Report
Alliance and Acquisition Report
&
They both have an equal chance of success, which is about 50% (Bleeke
and Ernst,1991).
Generally alliances are more successful if they are used to enter markets in
new geographical areas, or to develop products that are not core to either
partys business strategy ( Bleeke and Ernst, 1995).
Existing
Geography
Prime
Business
New
Business
Acquisition
Alliance
(Acquisition)
New
Geography
Alliance
(Acquisition)
Alliance
2/3 of cross-border alliances run into serious problems in the first two years
of their existence ( Bleeke and Ernst,1991) and 1/3 result in failure.
Strategic alliances can involve several groups of companies ( GomesCasseres, 1994) and may be set up to develop new products ( Bidault and
Cummings, 1994)
Sometimes a large firm will form an alliance with a much smaller company ,
and tap into the smaller partners innovative and entrepreneural skills, while
the smaller company gains access to world markets, volume manufacturing
and much greater resources ( Peridis, 1993).
Market
Leader
Prime
business
Secondary
business
Market
follower
Defend lead
position
Maintain
status quo
Change
position
Strong Alliances
Driving forces in the business are itemized and analyzed. Activities which
add value need to be itemized and clearly identified.
Ex. Manufacturing
Marketing sales
R and D
Customer satisfaction
2. Market Analysis
Competitor
Analysis
Company
Company strengths
strengths
and
and competitive
competitive
advantage
advantage
Benchmarking
Benchmarking
Sensitivity
Sensitivity
Analysis
Analysis
Product life
life cycle
cycle
Product
Technological and
market forecasting
3. Gap Analysis
Gap analysis is the technique for the identifying the difference between
the aims of the corporation and the expected results if no action is
taken ( Ansolf, 1972).
4. Financial analysis