5. Strategic alliances 1- Economist Intelligence Unit Global Survey EIU/KPMG international 2005. 2- Booz-Allen & Hamilton 1999 Survey of Top 2000 US & European firms Types of partnerships CEO will rely on for increasing market share (1) Priorities for major companies (2)
14. Examples Successful alliance (Starbucks –Kraft) Unsuccessful alliance (Dockers and American Pacific Enterprises) Starbucks and Kraft had an alliance where Starbucks coffee will be distributed through Kraft only, Both companies will benefit: Starbucks gains quick entry into 25,000 supermarkets in USA, supported by the marketing muscle of 3,500 Kraft salespeople and Kraft tops off its coffee line with the best-known premium brand and gains quick entry into the fast-growing premium coffee segment. Dockers and American Pacific Enterprises (APE) which is working in bedding ensembles, sheets, towels and bath accessories industries, had an alliance, where APE will sell towels and bed accessories with Dockers name on it. There was no benefit for Dockers, but American Pacific Enterprises needed a strong brand image, this unbalanced alliance Lead to a big disaster for Dockers, eventually as their brand image was severely damaged due to this awkward partnering with unrelated products. Leading to eventually ending this alliance .