A classic strategic dilemma is: ‘make, buy or partner’. Even Microsoft – virtually a monopolist – cannot avoid entering alliances. Bill Gates commented on this when he said: ‘Microsoft can’t make it alone, but together anything is possible.’
Alliances – one on one or with a number of partners – are one of the best ways to develop new combinations. Philips in particular has been very successful in this area. Unlike mergers and takeovers, alliances do not require a costly and difficult integration process. Speed and flexibility are other important advantages of alliances, but success is not guaranteed.
Alliances come with the risk of infidelity and conflicts, because the interests are often substantial. This is perhaps the paradox of alliances: everyone does it, but the results are often disappointing. A structured approach to alliances significantly increases the chances of success. This is becoming increasingly important now that many businesses are part of complex networks of alliances.
In our view, successful alliances require that alliance management be developed as a separate competence and that alliance processes be addressed thoroughly. Only then can an optimal fit in strategy, technique, organisation and culture between alliance partners be reached. Boer & Croon’s knowledge and experience can ultimately make the difference here between a good fit and failure.