ALLIANC E BR AND Fulfi lling the Promise of Partnering Mark Darby ALLIANCE BRAND ‘It is not enough to bring big names together simply because it seems to make sense. An alli- ance must create a value proposition that could not have existed within either enterprise. Mark Darby’s practitioner expertise and extensive research have brought him unique insights. Using accurate and dynamic models, he provides us with powerful tools to address the tough questions that the daily business of alliance management obscures.’ Jonathan Cohen, Practice Principal, HP ‘Alliances provide the opportunity for both commercial and not-for-profi t organisations to build competitive advantage, increase sustainability and brand value. However building the necessary relationships can be a high risk undertaking for all sides. Mark Darby brings insight tempered by his extensive experience to guide directors and managers when considering the strategic and operational implications of this option for their business.’ David Yates, President, Chartered Institute of Marketing, Sussex ‘SEEDA is dependent on alliances for success. Mark Darby helped our Enterprise Team make positive strides forward. We have enthusiastically embraced his advice, and his book can help you to also get great results from alliances and a positive reputation for partnering.’ Jeff Alexander, Executive Director, Business and International, SEEDA ‘FDM has relationships with companies that have resource constraints at the point of software product implementation. We built our unique IT staffi ng “Mountie” model on the principal of alliances embedding it into our company’s culture and philosophy. We have worked exten- sively with ALLIANTIST to shape and refi ne this approach. Alliance Brand shows you how to build that partnering capability too.’ Rod Flavell, CEO, FDM Group Limited ‘Alliance Brand achieves three things. First, it helps optimise ROI from alliances at an operational level. Second, it provides for good corporate governance. Third, and probably most important, alliances are now part of the business planning strategic agenda. Get this right and the other two fall into place. Mark shows you how to do it all in this book.’ Antonio Betes, CEO, Vetlab Services Limited ‘As an SME we work closely with a number of partners but don’t have the budgets that many large corporates might have for alliance management. However, our reputation as the dispensing solution partner of choice for our customers, suppliers and stockists relies on us continuing to develop our capability and invest in those relationships. By working with Mark and following his philosophy we have got smarter about where we invest and how we work internally as well as with our partners, to great effect. His philosophy is not just for the large corporates; everyone who partners, especially SMES, will need a positive reputation for alliance management just to compete in the future, let alone prosper. Buying this book and applying his simple yet effective methods could be the best return on investment you ever make.’ Stephen Woolmer, Managing Director, Brightwell Dispensers Limited ALLIANC E BR AND Fulfi lling the Promise of Partnering Mark Darby Copyright © 2006 ALLIANTIST Published by John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) 1243 779777 Email (for orders and customer service enquiries): [email protected] Visit our Home Page on www.wiley.com All Rights Reserved. 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Library of Congress Cataloging-in-Publication Data Darby, Mark Alliance brand : fulfi lling the promise of partnering / Mark Darby. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-470-03218-3 (cloth: alk. paper) ISBN-10: 0-470-03218-9 (cloth: alk. paper) 1. Strategic alliances (Business) I. Title. HD69.S8D387 2006 658′.044—dc22 2006016561 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 13 978-0-470-03218-3 (HB) ISBN 10 0-470-03218-9 (HB) Typeset in 11.5/15 pt Bembo and Univers by SNP Best-set Typesetter Ltd, Hong Kong Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall, UK This book is printed on acid-free paper responsibly manufactured from sustainable forestry in which at least two trees are planted for each one used for paper production. For: Marshall and Tegan In memory of: Sandra Darby; only after Mum had been taken did I realise that what she gave me was so valuable. Timothy Foster; founder of Adslogans.com. A truly gifted and charming man who helped establish ALLIANTIST. CONTENTS FOREWORD BY JEFF ALEXANDER, SEEDA xiii ACKNOWLEDGEMENTS xv PREFACE xix PART I U SING ALLIANCES TO CREATE VALUE 1 1 HOW VALUE AND ADVANTAGE AFFECT FIRM ACTIVITIES 3 What is value 3 Understanding competitive advantage 6 2 UNDERSTANDING ALLIANCES 13 Alliance ambiguity 13 Defi ning alliances 14 What alliances are not 16 Assets are what you access 17 Alliances pervade the value chain 18 Alliances have differing values and importance 21 Partners come from various sources 24 Complex relationships 26 viii CONTENTS 3 FORCES DRIVING FOR ALLIANCES 29 Customer demands and industry standards 30 Increasing pace of change with growth and cost pressures 31 Regulation and governance 33 Increasing M&A challenges 35 Capital, size, learning and competitive threat 36 4 WHAT WINNING ALLIANCES LOOK LIKE 39 Alliance spirit 39 Building trust 40 What an organisation that wins with alliances does for success 47 5 FORCES CHALLENGING ALLIANCE SUCCESS 53 Alliance failure rates 53 Other forces challenging success 60 6 ALLIANCE BRAND 67 Reputation in context 67 Brand in context 70 Alliance brand; a timely initiative 72 Examples of alliance brands 76 Getting results, reputation and alliance brand status 80 Does your organisation need an alliance brand? 82 PART I S UMMARY 85 PART II HAVING A CAPABILITY TO PARTNER 87 7 CLARITY ON STRATEGY AND DIRECTION 91 The importance of clarity on strategy and direction 92
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