The Elements Of Value Network Alliances: Strategies For Building Alliance Partnerships

Nowadays, the number of corporate alliances continues to rise - by as much as 25 percent a year - and now accounts for nearly a third of many firms' revenues and value. Yet some studies suggest the failure rate of alliances stands at an incredible 60-70 percent. This worrying statistic prompts many questions on why so many firms struggle to generate success from an alliance strategy. For instance, what are the general concerns with how network alliances are structured? Can the implementation of an alliance strategy be simplified? How can alliances consistently deliver value? This paper initially focuses on the formation and structure of the alliance partnership, which will be followed by an exploration of managing and measuring the performance of network alliance partnerships.