Creating%20and%20Managing%20Strategic%20Alliances

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Creating and Managing Strategic Alliances

• Gene Slowinski, Ph.D.

Director, Strategic Alliance Research Rutgers
University Alliance Management Group,
Inc. www.strategicalliance.com [phone]
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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program - implementing

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The Strategic Use of Alliances
The Traditional Model
HP/Compaq
IBM
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The Strategic Use of Alliances
The Network Model
IBM
HP/Compaq
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The Strategic Use of Alliances
A Strategic Approach to the Erythropoetin
MarketChugai Corporation
Chugai
Genetics Institute
RD
Manufacturing
Pharmacia
Name Recognition Distribution
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Competitive PositioningHow Wall Street will
value a firms portfolio of alliances
Global Channel Partners
E-commerce
Bioinformatics
Biotech

Merck















Pfizer








Ortho










GlaxoSmithKline









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Creating and ManagingStrategic Alliances

• The strategic use of alliances
• Best practices for building successful alliances
• Alliance Framework planning and structuring
• Alliance Implementation Program - implementing

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Alliance FrameworkSM

• A rigorous process for planning and negotiating
  an alliance.
• Goal is to develop a high quality deal quickly
  or, to understand that a deal is not possible ...
  quickly.
• Requires internal commitment from all key
  internal stakeholders (anyone with a budgetable
  resource).
• Accelerates implementation because implementers
  are part of the Alliance Framework team.
• Works best when both firms use the process.

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Why Alliances go bad !
Company A
Company B
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Alliance Framework Elements
Strategic Fit Elements

• Summary of business plan
• Objectives
• Roles
• Resources
• Boundary conditions
• Complete market model
• Exclusivity
• Intersections
• Intellectual property
• Financial distribution model
• Joint management processes
• Term and termination