Ibm Lenovo Alliance

Only available on StudyMode
  • Download(s) : 91
  • Published : August 2, 2012
Open Document
Text Preview
Strategic Alliance —Case Study of Lenovo and IBM

By

Lili Jiang

Dissertation submitted to the University of Nottingham Business School, in partial fulfillment of the requirements for the degree of Master of Science in International Business

September 2007

ACKNOWLEDGEMENTS

First of all, I would like to thank my supervisor Bernard Leca for his support and very help advices throughout this research. Then I would like to thank my family for giving me this opportunity to study abroad, and always believing in me and caring about me. And also, I am enormously grateful to the people work in Lenovo who were willing to participate in the electronic interview, without this, I cannot get the precious primary data to support my research. Last but not least, I would like to take this opportunity to express my gratitude to all my good friends, especially to Yanqi and Jingren, for their help and encouragement during this period.

1

ABSTRACT

Strategic alliance gains high popularity in recent decades and has become an increasingly favorable choice for the company that intends to attain a competitive edge over other rivals so as to make a stand in the global market. Facing with the rapid globalization trend and dramatic economic development, it is almost impossible for any companies to develop individually, just as Doz and Hamel (1998) argue that in this new world, networks, coalitions, alliances, and strategic partnerships are not an option but a necessity for companies to achieve competitive success.

Till now, several economists and strategists have examined the strategic alliance in a deep and extensive way, establishing a solid theoretical foundation for later research. These various theories and principles identify motivations to the formation of alliances, how to make the alliance work, classifying the benefits brought with successful alliances, and etc. However, as stated by these authors that the failure rate of strategic alliance is quite high especially in the early stage, the research on how to make the alliance work during this unstable period is relatively little.

Hence, the objective of this paper is to evaluate the alliance between Lenovo and IBM, a cross-boarder alliance between a Chinese and a U.S. company, and to analyze how to make the alliance work in the early stage of the relationship.

2

TABLE OF CONTENTS

Acknowledgements Abstract Table of Contents List of Tables and Figures

1 2 3 6

Chapter 1: Introduction…………………………………………………………..7

Chapter 2: Literature Review on Strategic Alliances……………………………10 2.1 Definitions of Strategic Alliances………………………………………………….10 2.2 Motives toward Strategic Alliances………………………………………………..14 2.3 Failure Rate of Strategic Alliances…………………………………………………15 2.4 Managing Partnership in the Early Stage of Strategic Alliances…………………..18 2.4.1 The Necessity of Early Stage Alliance Management……………………...18 2.4.2 Trust-Building……………………………………………………………...20 2.4.3 Cultural Compatibility……………………………………………………..22 2.5 Learning Ability during the Strategic Alliance……………………………………..24 2.6 Brand Management under the Strategic Alliance…………………………………...26

3

Chapter 3: Methodology……………………………………………………………30 3.1 Research Approach…………………………………………………………………30 3.2 Data Collection……………………………………………………………………..35 3.3 Data Analysis………………………………………………………………………36 3.4 Limitation of the Research………………………………………………………....37

Chapter 4: Research Setting……………………………………………………….39 4.1 Background of the Company………………………………………………………41 4.2 The Strategic Alliance with IBM…………………………………………………..43 4.3 The Necessity to Form the Strategic Alliance……………………………………...44 4.4 Motives toward Lenovo & IBM’s Strategic Alliance………………………………45

Chapter 5: Analysis on the Strategic Alliance…………………………………….49 5.1 Analysis—Secondary Date………………………………………………………...49 5.1.1 Problems Occurred in the Early Stage of the Alliance……………………49 5.2.2 Measures Have Been Taken and the Evaluation………………………….58 5.2...
tracking img