How to Manage Alliances Better Than One at a Time

Abstract : This article presents information about the importance to companies of thoroughly analyzing and managing alliances with other businesses in order to maintain good relationships. The article cites the case of French food company Groupe Danone and its relationship with Hangzhou Wahaha Group Co. Ltd., the leading Chinese bottled water and nonalcoholic beverage company. This profitable relationship ended because Hangzhou accused Danone of having alliances with rival companies. Managers should develop business frameworks that provide proper analysis of such alliances.