Ibm & Apple Case Study

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APPLE & IBM CASE STUDY Summary of Relevant facts As companies gain experience in building alliances, they often find their portfolios ballooning with partnerships. While these partnerships may contribute value to the firm, not all alliances are in fact strategic to an organization. This is a critical point, since, as this article will explain, those alliances that are truly strategic must be identified clearly and managed differently than more conventional business relationships. IBM and Apple have announced an industry-disrupting partnership to go after the enterprise. This is a direct shot across the bows of Microsoft, Google, and others who might have hoped to make inroads into the expanding demand for enterprise mobile solutions. When an alliance is driven by intent to mitigate significant risk to an underlying business objective, the nature of the risk and its potential impact on the underlying business objective are the key determinants of whether or not it is truly strategic. Dual sourcing strategies for critical production components or processes are excellent examples of how risk mitigation can become the context for supply-side strategic alliances. aside from ensuring “sound strategic alignment” between the partners, most determinants of failure are less than strategic in nature. Strategic alliance organizations are feeling increased pressure. Determination of strategic value of the alliance is necessary and keeping up the value of the same is utmost important factor in any alliance. * What is the nature of the strategic relationship with IBM and Apple? Upon initial observation, it would seem that technology alliances between firms with different basic designs would be very unlikely, as their strategic postures are based on different technical approaches or architectures. The technological overlap of these companies

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