Title: The strategic alliance: automotive paradigm for the 1990s

Authors: R.G. Bertodo

Addresses: Strategic Planning Director, Rover Group, Fletchamstead Highway, Canley, Coventry, CV4 9DB, England, UK

Abstract: The paper reviews a pool of experience with strategic alliances and partnerships built up over a period of 70 years across four continents. The key success criteria for such collaborative relationships are explored, and a case study of a UK-Japanese partnership presented. The author concludes that success is totally dependent upon a managerial willingness to learn, an ability to control the pace of information transfer and acquisition, and a determination to exploit the newly-acquired skills to reduce fixed costs. The accumulation of knowledge is not automatic, quick nor painless. As the pace of information transfer quickens, the higher exposure and transparency to the partner reveal new risks which inevitably lead to either discontinuance or closer integration. Despite the risks, the accelerating pace of business and technological development will create a greater need for strategic collaboration in the 1990s. This is evident from the rapid shifting of the balance of factors determining competitive advantage, between innovation, market access and cost leadership.

Keywords: strategic alliances; competitive advantage; collaborative relationships; automobile industry; UK-Japanese partnership; United Kingdom; Japan; strategic collaboration; automotive partnerships; innovation; market access; cost leadership.

DOI: 10.1504/IJTM.1990.025853

International Journal of Technology Management, 1990 Vol.5 No.4, pp.375 - 388

Published online: 25 May 2009 *

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