Creating Value: Strategic Alliances in Practice

How to Run a Strategic Alliance

A strategic alliance allows two or more companies to pursue growth without one having to acquire the other.  In a risky and imperfect world, alliances are often the cheapest and fastest way to expand into new territories and markets. A strategic alliance is an agreement between two or more parties to pursue common objectives whilst […]

Creating Value: Strategic Alliances

The Whole is Greater than the Sum of the Parts

One method to scale your business quickly is to collaborate with other companies in similar but different sub-sectors.  An alliance or joint venture is slower route to growth than an acquisition, but is usually faster and less risky than relying on organic growth. A strategic alliance allows two or more companies to pursue growth without […]

Creating Value – Successful M&A Roll Ups in Action

Execution is the key

To create value and growth quickly, a roll up might be a strategy might be the answer. A “roll up” or “consolidation strategy” is a mergers and acquisitions strategy where your company buys up other companies in the same market and merges them into one larger entity. To make them work, however, you need to […]

Creating Value: Elements of a Successful Roll Up in Mergers & Acquisitions

Execution is the Key

Target companies rarely have the personnel and expertise to conduct a roll up of other targets on your list. So don’t expect to buy your first company and use that management to run the next twenty companies you acquire. In fact, the integration of the operations of the target companies needs to be conducted by […]

Creating Value: The Three Stages of a Successful Roll Up Strategy

Charting the Course for Successful Acquisitions

Roll ups are a valid way of creating shareholder value. They proceed on the basis that the main company can acquire a number of smaller players in a fragmented industry and achieve cost savings as well as a better value proposition in a relatively short time span. A roll up strategy must be planned out […]

Creating Value: Roll Ups as a Strategy for Growth

The Four Pre-Conditions for a Successful Roll Up

When companies are looking for growth, roll ups might be the answer.  A “roll up” or “consolidation strategy” is when a company buys up other companies in the same market and merges them into one larger entity. The strategy is designed to strip out costs in the targets by consolidating the back office functions and […]

Strategic Alliances in Action: Starbucks

Starbucks is the largest coffee chain in the world with over US$16 billion in revenue in 2014. In the late 1980s, however, Starbucks was struggling after a failed attempt at expansion. It got back on its feet with an impressive series of strategic alliances:

1993: Forms an alliance with Barnes and Noble book stores to install in-house coffee shops that provided revenue to both parties.
1996: Partners with Pepsico to distribute its popular Frappuccino drink.
1996: Partners with Dreyers to sell Starbucks ice cream.
1998: Forms a strategic partnership with Kraft foods to distribute Starbucks coffee in supermarkets.
2006: Partners with Apple to sell music as part of its “coffee house” experience.

Find out more about strategic alliances:

Strategic Alliances
How Strategic Alliances Work in Practice.

Creating Value: Negotiation – Avoiding Neediness

Negotiating with big corporations often starts as a dream and ends as a nightmare.  Almost always, this is because you have demonstrated neediness. Neediness is most evident when small and mid-sized companies do their own negotiations.  It might be that a start-up needs this Fortune 500 company as a demonstration client or a cornerstone client. […]

Creating Value: Negotiation – Their Authority and Yours

You Want to be Speaking to the Organ Grinder, Not the Monkey

Have you ever negotiated to buy a new car only to have the salesman you are dealing with suddenly have to “take it to the manager” to have it approved?  Don’t get blindsided by this one in your corporate negotiations – you want to be speaking to the organ grinder, not the monkey. The “Authority Question” and […]