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Honda-Rover (a): Crafting an Alliance

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Collaborate with Your Competitors—and Win The reason to collaborate is to: * Gain new technology or skill
Companies align with other company to complement each other, exchange technologies that either part of the partner does not have. * Reduce cost
In some certain cases, to reduce cost or investment, companies cooperate or build a joint venture to enter a new market. * Gain market expertise
For example, one company has advantage of product while the other one has distribution, then they align with each other to better leverage their own strengths. In the meanwhile, companies that usually benefit from cooperation follow several common rules: * Cooperation is still in competition * Harmony does not mean successful * Even joint venture has limitation on shared information or technology * Learning from the counter part is most important
Honda-Rover (A): Crafting an Alliance
What role has Rover played in Honda's global strategy? What role has Honda played in Rover's strategy? Honda provided Rover with models that Rover could not afford the cost to develop from square one; Rover provided Honda with design that was popular in Europe and international market, in addition, the alliance made Rover a steady buyer of Honda’s engine.
Is Honda-Rover alliance successful? In the article “Collaborate with Your Competitors—and Win” it states that the success of a joint venture should be evaluated not by the longevity of the relationship but by the shifts in advantage on each side. From this point of view, I think Honda-Rover alliance is successful. Rover’s cost decreased and sales increased; Honda gained insights of European market and the alliance boosted Honda’s sales in Europe.
Why did BMW acquire Rover? BMW acquire Rover to expand market share, gain advantage of operation such as logistic, production…etc., expand product line such

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