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The Alliance Revolution - The New Shape of Business Rivalry (Paperback, New Ed)
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The Alliance Revolution - The New Shape of Business Rivalry (Paperback, New Ed)
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More than we ever anticipated, alliances among firms are changing
the way business is conducted, particularly in the global,
high-technology sector. The reasons are clear: companies must
increasingly pool their capabilities to succeed in ever more
complex and rapidly changing businesses. But the consequences for
managers and for the economy have so far been underestimated. In
this new book, Benjamin Gomes-Casseres presents the first in-depth
account of the new world of business alliances and shows how
collaboration has become part of the very fabric of modern
competition. Alliances, he argues, create new units of competition
that do battle with one another and with traditional single firms.
The flexible capabilities of these multi-firm constellations give
them advantages over single firms in certain contexts, offsetting
the advantage of a single firm's unified control. When managed
effectively, alliances can strengthen a firm's competitive
advantage and narrow the gap between leading firms and second-tier
players. This often results in intensified rivalry, and the
competition within an industry is transformed. Alliances often
spread swiftly through an industry as firms jockey for advantage.
Yet the very spread of alliances increases their costs and poses
new limits on their use. Gomes-Casseres concludes that firms need
to manage their constellations to enhance collaboration within
their groups, while raising what he calls "barriers to
collaboration" for rivals. These ideas are developed and
illustrated through original case studies of alliances among U.S.,
Japanese, and European firms in electronics and computers,
including Xerox, IBM, and Fujitsu as well as other small and large
companies. The book should be of interest to business academics,
managers, and general readers concerned with contemporary
capitalism.
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