Championship Points

Whether alliances are entered into to achieve economies of scale, increase market share, identify and develop new business, or for any other reason(s), they will not succeed unless the partners have:

  • Mutually understood and appreciated interests. Budding relationships like those enjoyed by 1-800-Flowers and Nike have worked because each partner's ally has brought with it complementary interests that extend the value of the alliance.

  • Mastered the new math. It does not require a heavyweight like George Steinbrenner to generate strong alliances that leverage assets and generate cash flow. Smaller organizations can do so provided they monitor the relationship and seek to uncover and exploit opportunities to build or extend new businesses.

  • Demonstrated a fit. Organizations that cannot demonstrate adequate chemistry when structuring strategic alliances, frequently find themselves skating on thin ice. This applies to both the organization, in terms of culture, and extends to include the personalities of the individuals involved.

  • Generated a pair of wins. Alliances cannot be successfully sustained if one party consistently derives greater value from it. If and when the structure of the alliance needs to be revisited, the parties to it must do so proactively to maintain the benefits created by the alliance.

  • Gotten along. When compatible styles of operations and management exist, alliances can prove invaluable. When they are sorely lacking, the damage, both financial and in terms of brand value, cannot be quickly diminished.

  • Measured the opportunity. The best intentioned alliances will not work until or unless those involved are able to articulate the tangible and intangible benefits of the partnership.

  • Devised a clear game plan. Because strategic alliances will no doubt generate unintended consequences and issues, proper planning can mitigate these developments and help the alliance overcome any unforeseen shortcomings or vulnerabilities.

  • Provided meaningful commitment and support. Strategic alliances are like any other important relationship; for them to work, each party must communicate its likes and dislikes, while consistently creating an atmosphere for buy-in.

The creation and implementation of well-thought-out strategic alliances can be a very powerful business tool that increases sales and builds shareholder value. However, a failure to fully comprehend all the intricacies associated with such business relationships all too often forces the organizations involved in the alliance to have to "play defense."

In traditional business, this includes having a strong game plan to handle crises.



On the Ball. What You Can Learn About Business from America's Sports Leaders
On the Ball: What You Can Learn About Business From Americas Sports Leaders
ISBN: 013100963X
EAN: 2147483647
Year: 2003
Pages: 93

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net