Managing Alliances: Case Study of Philips

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Managing Alliances Q1.What is your assessment of the process used to create alliance capabilities at Philips. When a large but mostly decentralized corporation such as Philips operates as many separate divisions that do not necessarily coordinate their activities then there can be many missed opportunities to create partnerships in the external environment. Phillips recognized some of these occurrences in the year 2000 and designed a project to attempt to capitalize on some of these lost opportunities. Phillips set up a new department known as the "Alliance Office" and instructed the leaders to better manage their strategic alliances with other companies such as Oracle, Microsoft, Sony, Samsung, Dell, and many others. The Alliance office was tasked with three distinct roles and sets of responsibilities. The first task was to better manage some of the current relationships that the company had formed with other corporations. This required, first and foremost, creating a list of the current activities that Phillips was involved with its partners in its somewhat fragmented operating model. This task itself required a great deal of coordination between the various divisions at Phillips. The next task was to look for opportunities to improve alliances with other corporations. This also included the ability to target alliances that could create operational efficiencies. Finally, the last task involved was to institutionalize the entire process to the extent that a dedicated

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