The different arrangements made in corporate setting to share profits, productivity and even risks.

1. Collaborations
and
Alliances
Mario L. Rance
TM201-Th 6-9PM
UP Technology Management Center

2. Why
go
solo?

3. Why
collaborate?

4. Knowledge

5. Knowledge-intensive
Industries
Biotechnology
Semiconductor
Medical
Energy

6. Going Solo
Vertically Integrated Mode
Owns all parts
of value chain
Marketing
Manufacturing and
Distribution

7. CORE TECHNOLOGY
Factors to consider
TYPE OF FIRM INDUSTRY AFFLIATION

8. CORE TECHNOLOGY
DISCRETE
TECHNOLOGY
SYSTEMATIC
TECHNOLOGY

10. Collaborate
Contractual Mode
Joint venture Licensing
Contract manufacturing
Outsourcing
Merger and acquisition
Collective Research Organization
Strategic Alliance

11. Pros and Cons
Full Control
imposes greater
coordination costs and
demands the smooth
utilization of assets

12. Pros and Cons
SHARED RISK AND
COST
Limited
Control
ACCESS TO NEW
MARKET
ADDITIONAL
KNOWLEDGE &
EXPERTISE
REDUCE
DEVELOPMENT TIME
SKILLS AND
RESOURCES
READILY
AVAILABLE

13. When
contracting…..
The knowledge
must be easily
codified.

14. Tacit vs. Explicit
knowledge

15. Which is
better?

16. UNIVERSITY
RESEARCH

17. IN-HOUSE
RESEARCH

18. Strategic Alliance vs.
Joint venture vs.
Merger & Acquisition

19. Strategic Alliance
an approach in which two or more companies
agree to pool their resources together to form a
combined force in the marketplace.

20. Strategic Alliance
COMPREHENSIVE
ALLIANCE
in which the participating
firms agree to perform
together multiple stages of
the process by which goods
or services are brought to
the market: R&D, design,
production, marketing, and
distribution.
FUNCTIONAL ALLIANCE
in which the participating firms
agree to cooperate only in a
single functional tional area of
the business such as R&D or
marketing.
• Production Alliances
• Marketing Alliances
• Financial Alliances
• R&D Alliances

21. Strategic Alliance

22. Strategic Alliance

23. Strategic Alliance
Under the alliance, Cebu Pacific’s
passengers, particularly from the
Philippines, will be able to access
connections onto Tigerair’s
established network in South East
Asia and India.
Tigerair’s customers, on the other
hand, will be able to select from
Cebu Pacific’s extensive network
in the Philippines and North Asia.

24. Strategic Alliance
An oil and natural gas company might form a strategic
alliance with a research laboratory to develop more
commercially viable recovery processes.
A clothing retailer might form a strategic alliance with
a single manufacturer to ensure consistent quality and
sizing.
A website could form a strategic alliance with an
analytics company to improve its marketing efforts.

25. Strategic Alliance
VERTICAL ALLIANCE
Supplier Value Chain
Buyer Value Chain
Japanese manufacturers rely on close
relationships with and among suppliers to
implement Just-In-Time inventory systems
Vertical
Alliance

26. Strategic Alliance
HORIZONTAL ALLIANCE
Horizont
al
Alliance
Buyer Value Chain Buyer Value Chain
For example:
Marketing agreements between Various Airlines

27. Joint venture

28. Thank you.
Mario L. Rance
mlrance@up.edu.ph