Joint ventures and strategic alliances
Joint ventures and strategic alliances are typical examples of situations in which strategic interactions between different players occur — be it in an R&D partnership, in handling a specific market, or in a co-manufacturing agreement. In many business situations, stakeholders seek to improve their competitive positions via such alliances and are driven by different interests and motives. Once the potential actions and major interests of each player are properly understood, the analysis of the resulting interactions provides deeper insights into promising strategic options.
We have dealt with potential alliances and joint ventures and their impact on market interactions in various industries.
Selected cases: Joint ventures and strategic alliances
Developing a plan B in the event of an unfavorable regulatory decision
Being one of three competitors with the technology and patents to enter an attractive country, the client had been waiting for permission from the governmental authorities for three years. Six months before the final decision of the government was due, the client asked us to develop a plan B regarding how to act in case of another negative decision by the authorities regarding whether to open the market.
Defining a future strategy, positioning, and product specification for a vehicle's new value-added service
Our client was a major car manufacturer (OEM) designing a specialized value-added service intended to be both profitable on a standalone base and, at the same time, support sales. Due to the special requirements, partnering options with technology enablers were evaluated.
We helped the client team find the best options for product features and positioning, both considering the reactions of established players and assessing risks and opportunities from entries into the industry, including a realistic assessment of the industry landscape to come.
Preparing a major customized offer for a highly customized contractual agreement
Our client, a major IT company, was preparing a contractual offer for a major customer. While preparing the negotiation, we conducted an intense stakeholder and decision-maker analysis for the customer and the main competitors. The key to resolving the issue was considering the multiple perspectives of the key parties involved.
Preparing and accompanying a major request for proposal
After a request for proposal, our client negotiated a complicated and innovative new technology investment in the mechanical engineering industry with the two remaining suppliers. In supporting the client during the preparation phase and the actual negotiation, complex bundling issues had to be resolved, and governmental issues were also at stake. At the same time, all parties had to safeguard their negotiating position to keep prices within the desired range and to ensure that both suppliers remained in the process.
Pre-emptive capacity investment and termination of a co-producer agreement
In a market with short capacity but an unstable market environment, the logical competitor for the next capacity investment, given established industry conduct, hesitated, while our client ran short on capacity.
The client asked us to evaluate the options for pre-emptive capacity building and/or the termination of a co-producer agreement, with the danger of aggressive retaliation. In spite of these doubts, our team came to the clear decision, advocating a significant investment while also cutting down the co-producer agreement.
Switching to and investing in future network systems while staying profitable
Although highly profitable, our client intended to heavily invest into a new upcoming technology to meet future customer demands and to maintain his technological advantage. As shifting all customers and products to the new product would have been way too expensive, the investments had to happen stepwise. We helped our client to identify customers, products, and segments strategically most important and to develop the best sequence for the stepwise investments too.