A Network of Alliances case analysis Essay

676 WordsMar 29, 20133 Pages
MGT 362 Mei Fang Sung (0563365) Corning Incorporated: A Network of Alliances case analysis From 1980 to 1988, there are 2000 major alliances happen between U.S. and European. Most of the companies wanted to take advantage on low cost, new technology transmission, and sharing the risk. However, a U.S.-based survey point out that 57% of alliances had not succeeded between 1975 and 1985. There are several reasons, insufficient trust, conflict business goal, and chaos hierarchy organization. Corning is one of the most successful companies to create their alliances network. The reason why they were doing this is because they don’t have enough skill to transfer their innovation to profit. Therefore, they need to make…show more content…
I do believe these two proposal have high opportunity to gain more market. Since 1988, the fiber price fell down 70% and Corning’s profit drop sharply. We know that the long distance optic cables market was mature already. Corning needs to explore newborn local cable system. Otherwise, Corning would suffer huge loss when their patents expire in 1990s. Also, they can go to Eastern Europe and USSR and look for alliance partner so that they can provide their existed optic cable skill to those Europe companies. In addition, it is the right choice to provide their cable terminal peripherals alliance to IBM. Just like Intel, Corning can expand their market share by cooperate with the company who has the same high quality strategy. The third proposal is about TV glass business. Corning knew that Japanese companies dominated the TV industry in 1980s. The only way to cooperate with Japanese TV companies is through their supplier, either from Korean or Japan. Asahi would be the best candidate because they are the leader of TV glass industry and they are coming from Japan. However, Coring concerned about that if they make alliance with Asahi, they might lose their decision-making power. Therefore, Corning needed to make sure they won’t lose their autonomous. They need to make some clear hierarchy organization and ask for what technology Asahi willing to share with me? The whole idea of alliance is to share the technology
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