Strategic Management Fit: The
Enabling Role of Alliances for an
Each company, industry and country has individual strategic needs which dictate the role of alliances in a multinational company. The strategic role, or fit, can range from significant, enterprise-wide strategic use, as was the case with News Corporation, Toshiba and Motorola, to an important enabling role as at Gillette as it expanded worldwide. In addition, that strategic role can vary over time as circumstances change.
NEEDS DICTATE DIFFERENT ALLIANCE STRATEGIES
Rupert Murdoch, chairman and owner of a 30% controlling interest in the Australian-based News Corporation, used alliances to achieve his corporation's objective:
to own every major form of programming – news, sports, films, and children's
shows—and bring them via satellite or TV stations to homes in the United
States, Europe, Asia and South America.
Murdoch has formed dozens of alliances to achieve this objective over a relatively short time period. For example, News Corporation, which owns two satellite services, Star TV in Asia and B Sky B in the UK, announced in 1995 the formation of a direct broadcast service