The end of the 'Sony Ericsson' Affair

This is a good case study of JV that never really worked as expected. One of the most interesting pieces of information was the fact that Sony was reluctant to link the handsets to the rest of its products which are very successful, fearing that Ericsson would had been benefited. This is also a very good example of how companies seeks to develop synergies based on their core competence. Sony has a great range of unique resources and core competences which should be linked to the handset.
It is quite interesting that when this JV was established the handset industry was not linked to any of other products by Sony.

Some articles for the full story: http://www.bbc.co.uk/news/business-15473954; http://www.bbc.co.uk/news/business-15285258

News Corporation and BSkyB takeover

Let aside the political issues of this takeover or merger, what is interesting from a strategic management perspective is the efforts of News Corp to develop synergies (http://www.bbc.co.uk/news/business-14104397) between different media platforms. This is a clear corporate direction (see a good review of the various attempts http://www.guardian.co.uk/media/organgrinder/2011/jan/05/news-corp-bskyb-david-elstein). An interesting question is why BSkyB was not part of the News Corp from the beginning since it was established by the same company (for a brief history/evolution of the company see: http://en.wikipedia.org/wiki/File:UK_satellite_TV_evolution_vector.svg), which should probably be attributed to risk management by News Corp. The other point which worth taking is that merger is the only strategic option as the legislation would not allow for collaborations and synergies via some sort of strategic alliance.

Diageo to buy Turkish spirits firm Mey Icki

Good example of how a large established player in mature markets, seeks expansion in emerging markets via M&A. This acquisition is consistent with Diageos previous international strategies.


Diageo’s Turkish Delight
Diageo’s acquisition of Turkey’s Mey Içki from private equity firm TPG Capital today was not a real surprise, as nascent talks between the drink makers were first reported here back in December last year.
For the London-based drinks giant the numbers appear to add up.

Read the whole article at:http://blogs.wsj.com/source/2011/02/21/diageo%E2%80%99s-turkish-delight/

Peugeot and BMW form hybrid components joint-venture

Good example of Collaboration, Network Level Strategy. This is a Joint Venture between to well established rival companies in the automarket. This collaboration concerns a segment of the market that none of them entered in the early stages. It concerns a Macro-External factor (technology) which was an uncertainty in the previous decade and has now created a new segment in the market. As usual most of JV are driven by R&D needs. It is also interesting to note that in other industry these companies would had considered a stronger collaboration (Merger?) but it is well established that European governmenets will not give in easily on such mergers.


Peugeot and BMW form hybrid components joint-venture

French car maker PSA Peugeot Citroen and Germany's BMW have extended their engine partnership by creating a joint venture to develop, purchase and produce powertrain components for hybrid vehicles.

Read the whole article at: http://www.reuters.com/article/2011/02/02/us-peugeot-bmw-idUSTRE71124V20110202

additional article with more analysis on the same topic: http://uk.ibtimes.com/articles/110912/20110210/bmw-group-psa-peugeot-citro-n-electrification-venture-hybrid-technology.htm

Nokia and Microsoft form partnership

Very interesting development in the mobile phones industry. Good example of how to companies which have traditionally been leaders in their industries, and now are falling behind, have decided to react. It is interesting to note that Microsoft has continued its recent corporate strategy of responding to dynamics in industries (mobile phones and internet) which are not core for it (software) with strategic alliances.
Quite interesting and insightful commentary by Cellan-Jones, on the impact of organisational culture for the choice of partner on behalf of Nokia. It links well with the theories on Network Level Strategies which suggest that collaborations are more successful if organisational cultures are close between the partnering companies. Moveover, also useful to emphasise that there is significant difference in the organisational culture between two companies for the same country and environment (Microsoft and Google).

Nokia and Microsoft form partnership

Nokia has joined forces with Microsoft in an attempt to regain ground lost to the iPhone and Android-based devices.
The deal will see Nokia use the Windows phone operating system for its smartphones, the company said.
It means that Nokia's existing operating systems will be sidelined

Read the whole article at: http://www.bbc.co.uk/news/business-12427680

Microsoft's Bing deepens ties with Facebook

Good example of how Microsoft creates synergies between one of its SBUs (search engine) and facebook.com (which they do not own 100% but they are one of the main shareholders). This actually workds as a good example of how strategic alliances work, too. Interesting to note, that Microsoft has spent almost a decade trying to catch up Google and it seems that are not capable of developing the reource/capability in terms of technology and they are definetely lacking in terms of reputation; however creating synergies with the most popular networking site could help them boost Bing's popularity and usage.

Microsoft's Bing deepens ties with Facebook

Microsoft's Bing search engine has begun showing US users which sites and products their Facebook friends like.
The move is an attempt to make web search results more personal.
It is part of a four-year alliance between the two companies and marks another step in Microsoft's attempt to displace market leader Google.

Read the whole article at: http://www.bbc.co.uk/news/technology-11540661

Google enters travel market with flight data purchase

Google is diversifying while building on its core competences.

Google enters travel market with flight data purchase
By Daniel EmeryTechnology reporter, BBC News

Search engine giant Google has entered the travel market after acquiring flight information firm ITA Software.
ITA provides software that organises fares, flight and journey times that are used by airlines, travel agents and flight comparison sites such as Orbitz.
Google said it may well expand the scope, enabling users to search directly for flight destinations.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/10486358.stm

BA and Iberia agree merger

Good example of an Overcapacity Merger.
Points to note:
-the friendly terms of the 'union'
-the fact that the companies will maintain their structure
-the emphasis on the Synergies to be gained,
-

BA and Iberia agree merger

By Pilita Clark in London and Mark Mulligan in Madrid
Published: November 12 2009 12:02 Last updated: November 13 2009 09:02

British Airways and Iberia on Thursday night agreed the terms of a merger to create Europe’s third-largest airline by revenue, one of the biggest deals in the global aviation industry.

But the two airlines have agreed that Iberia will be able to terminate the accord if it is unhappy with BA’s handling of its swollen pension scheme, which has been one of the sticking points in the deal, first announced in July last year.

Read the whole article at:http://www.ft.com/cms/s/0/ee333056-cf7f-11de-b876-00144feabdc0.html?nclick_check=1

Google to venture into start-ups

M&A as R&D. It is interesting how Google tries to expand in all directions.

Google to venture into start-ups

Google is searching for "the next big thing" in technology as it announces its latest effort, Google Ventures.
Its new venture capitalist arm pledged to help find and develop "exceptional start-ups", offering early stage investments to a range of new firms.
Areas it will look at include consumer internet, software, clean tech, bio tech and healthcare.


Read the whole article at: http://news.bbc.co.uk/1/hi/technology/7973783.stm

Vodafone and 02 to share networks

This is an unusual type of collaboration. It is hard to share infrastructure and at the same time compete. I have a suspicion that this is the first stage of an integration or even a merge (?)...

Vodafone and 02 to share networks

Mobile phone firms Vodafone and 02 parent Telefonica are to pool their network infrastructures in the UK and three other European countries.
The move will save both firms many millions of pounds in operating costs, and Telefonica admitted "the current economic situation was a catalyst".

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7959133.stm

Fiat and Chrysler create alliance

Example of strategic alliance. It is interesting to note how the two companies seek to get different types of benefits from this collaboration: access to knowledge (efficient engines) and access to the largest market.

Fiat and Chrysler create alliance

Italian carmaker Fiat and US giant Chrysler have agreed to create a global strategic alliance, the companies said in a statement.
Under the terms of the deal, Fiat will get a 35% stake in Chrysler. In return, the US firm will get access to Fiat's fuel-efficient vehicle technologies.
It is hoped the agreement will lead to "substantial" savings for Chrysler.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7839542.stm

Virgin Atlantic plans Gatwick bid

That's a good example of a strategic alliance in the form of a consurtium to bid for Gatwick. It is interesting how the potential synergies developed are described as a 'marriage made in Heaven'; they might have experienced marriages made in Hell in the past!

Virgin Atlantic plans Gatwick bid

Virgin Atlantic and Easyjet are planning a joint bid for Gatwick airport, which has been put up for sale by its owner, BAA.
Virgin is talking to a group of interested parties about a bid for the airport, valued by analysts at up to £2.5bn.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7728863.stm

Panasonic aims to take over Sanyo

That's an example of 'overcapacity' and 'product/market' M&A. Interesting to note that the statement of intention is signed by both CEO's and refers to synergies.

Panasonic aims to take over Sanyo

Japanese electronic rivals Panasonic and Sanyo are starting alliance talks, which could result in Panasonic taking over the smaller company.
Panasonic said it wanted to make Sanyo its subsidiary, effectively creating Japan's largest electronics maker.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7714994.stm

BMI being taken over by Lufthansa

Here is a good example how one network level strategy (strategic alliance) has changed to another (M&A). The point of interest in this story is the fact that it is not a deliberate strategic option by Lufthansa but an emergent strategy.

BMI being taken over by Lufthansa

UK airline BMI is being taken over by Germany's Lufthansa.
Lufthansa is buying the 50% of firm owned by BMI chairman Sir Michael Bishop, who forced the purchase under a long-standing agreement.

Read the whole article at: http://news.bbc.co.uk/1/hi/business/7697261.stm

BMI's no comment on merger rumour

Entry through a merger

BMI's no comment on merger rumour
UK airline BMI has declined to comment on newspaper speculation that it has been approached by Abu Dhabi carrier Etihad over a possible merger.
Etihad first went to BMI in the summer over a potential deal which values BMI at £600m, the Sunday Times reported.

Read the whole article: http://news.bbc.co.uk/1/hi/business/7615507.stm

BA seals alliance with American

BA seals alliance with American
British Airways says it has sealed an alliance with American Airlines that will allow the two carriers to fix fares, routes and schedules together.

The move will also include Spain's Iberia, which is merging with BA.

With aviation fuel prices near record levels and spending on air travel slowing, airlines are looking at ways to cut costs.

To read more:
http://news.bbc.co.uk/1/hi/business/7560790.stm