“Strategic Alliances: New competitive muscle” business week's ninth annual strategic planning conference— October 1986

Abstract

What are “Strategic Alliances”? Are they different from joint ventures? Professor Edward B. Roberts of M.I.T. defines them as direct co‐investments by two or more companies pooling complementary resources to achieve common goals in an arrangement that is less than a full merger or acquisition. These co‐investors are motivated by a desire to share risks and resources, gain a window on technology, obtain synergies (marketing, technological, or operational), and/or gain credibility. However, strategic alliances are not easily maintained—they require substantial commitment and mutual trust, Professor Roberts told the Business Week conference audience. Unfortunately, co‐investors are often caught in a tug‐of‐war of mismatched organizational cultures and management styles as well as a differing sense of urgency. Over time, objectives may diverge, interest may subside, or the unit's loss of autonomy may become a problem.