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Should Companies Jointly Venture by Sauvik Banerjee Part - V ALLIANCES-KEY FINDINGS A recent study by Mckinsey & Co found that alliances are more attractive than acquisitions when trying to launch a new business, or expand and enter into a new geographical market while Harvard and Yale published results of 1300 alliances that showed positive share price movement in both partners shares on the day the alliance was announced (Ananad .B & Khanna. T, 2000).
Source: Pekar.P. Jr and Marc S.Margulis Ivey Business Journal (2003) Wharton Business School and Ernst & Young in 2000 revealed that alliances of all types are one of the top five factors driving market value in all industries and Accenture while looking at the link between market capitalization and alliances in 1999 pointed to the fact that alliances contributed to over 12% of the total market cap for 40% companies*. Finally alliances have proved to yield on an average 50% higher ROIs for the top 100 US and European companies as compared to their core businesses**.
* Source: Accenture, The Point, Volume2, issue 1, 2002). |
