Various types of strategic alliances and joint ventures exist. To avoid confusion, I feel it's important to be aware of the thought behind the words and the names and define the terms, as they are normally used in business beyond online marketing.
Joint ventures are typcially thought of as arrangements where organizations remain independent but set up a newly created organization jointly owned by the parties involved.
A consortia may involve two or more organizations in a joint venture arrangement. An example could be the Star Alliance (a group of several air transport companies), gigantic building projects (like the ones that builds bridges and tunnels, connection two countries) or major aerospace undertakings (like Airbus). In these circumstances, the organizational relationships are likely to be formalized either in shareholding or agreements specifying asset sharing and the distribution of profits.
At the other extreme are networks, which are arrangements whereby two or more organizations work in collaboration without formal relationships but through a mechanism of mutual advantage and trust.
In Internet Marketing, more opportunistic arrangements arise, which are likely to be more focused around particular ventures or projects, but that may not be highly formalized. These arrangements are much nearer to market relationships than to contractual relationships. They exist for a number of reasons:
1) Because assets do not neet joint management - capital, expertise, know-how and so on can come together more informally (as in StomperNet, where the teachers are not employees per se, but have their own companies).
2) Assets cannot be separated easily from the firms involved, or without harm being done, for example, it may be that one partner is providing access to distribution channels that are part of their operation as a whole (one company's list of customers, for example).
3) If the assets involved were split off into a separate organization, there would be high risk of their being appropriated by another party involved. This would be particularly the case for the know-how and skills of the different parties involved.
Types and Motives For Strategic Alliances
Forms of Alliances:
A) Loose (Market) Relationships
Networks
Opportunistic Alliances
Here, assets do not need joint management. But the assets cannot be separated and there is a high risk of the assets/skills or know-how being appropriated. This is where most of us are in online businesses
B) Contractual Relationships
Sub-contracting
Licensing and franchises
In this type of alliance, asset management can be isolated. Assets/skills can be separated, but in some cases there is still a high risk of assets being appropriated, whereas in other cases, there are low risks involved.
C) Formalized Ownership/Relationships
Consortia
Joint Ventures
In formalized ownership, assets need to be jointly managed. Sometimes assets/skills can be separated and at other times they cannot, depending on the instance.
D) Formal Integration
Aquisitions and mergers
This is complicated and any and all combinations can occur here.
Sometimes, strategic alliances (or joint ventures) do not work out very well. Sometimes, they are not a good match, even though, on the surface, all the criteria and rationale for matching options with circumstances seemed to be a perfect fit. Why is this?
Angela Wickenberg
P.S. Have you joined us yet? http://www.facebook.com/group.php?gid=54338290656
Got positions #1 and #2 within 1 hour
