Contents1. Introduction (1)2. Reviews (1)3. The practice of Apple (4)3.1 pattern one (Alliance with the companies of the productionchain ) (5)3.2 pattern two (Alliance with the hostile firm which is in thesame industry) (7)3.3 pattern three (Alliance with the noncompeting companies) .. 124. Application to other firms (16)5. Conclusion (19)The Strategic Alliance’ Application in Apple1. IntroductionIn 1997 ，Steve Jobs came back to and took in charge of Apple. He began his pragmatic strategy, and put the Apple back into the low-end consumer market. He has taken a series of measures to save the Apple, which is on the brink of bankruptcy. One of the most important measures is the adjustment of alliance force, including a series of establishment of strategic alliance.This pioneering work make Apple gain many external funding and technology support. And through the alliance between giants, Apple has stimulated new consumption motivation to develop the market.This article will explain the theoretical knowledge of Enterprise Strategic Alliances. And we will analysis various practice of Apple's enterprise strategic alliances especially. In addition, in this paper, this theory is applied to other companies to verify the advantages of enterprise strategic alliance strategy, and discuss its application.2. ReviewsStrategic Alliances originated from the Japanese entrepreneurs at the time of joint ventures. Some Japanese businesses found out that instead of the cooperation, purchasing advanced technology would benefit themselves more when looking for joint venture partners. This is the rudiment of strategic alliance. The concept of strategic alliance originated in Japan but prevailed in U.S. Since the year of 1990, the growth rate of domestic and international qualitative strategic alliance had reached 25% annually in U.S. The concept of Strategic alliance was also raised at the first time by Jane Hopland, the DEC Compa ny’s CEO, and a management expert Roger Nigel.The research on the strategic alliance is basically in the sphere of strategic management category, and the center of the strategic management issues, is the study of how to create and maintain the competitive advantages of enterprises. Since the 1980s, western enterprise especially transnational companies had faced a constantly changing and fierce competitive external environment. The strategic adjustment had commenced on the relationship of enterprise competition according to this phenomenon, which means the transaction from opposite competition to competitive cooperation. According to The Cooperative Competition Theory, competition does not repel cooperation, and even sometimes cooperation is more advantageous to the competition efficiency. Strategic management had researched a turning point in the 90s, which also give a clue of the changing that the research had move on from the competition to cooperation. Modern cooperation processes produced new competitors, and build the new industry system, also create a new type of competition. Strategic alliance is one of the new cooperative competitions. Performance for cooperation will commence when creating a market together, and competition will come along when market distribution is on the way. The target that strategic alliance parties try to create and share a growing bigger market is the embodiment of the view of this new competition attitude.And then, along with the rapid development of science and technology and also the constant change of the external environment of enterprise, the enterprise ability theory was raised. The enterprise ability theory is a thought that believe the deeper reason of the behavior of strategic alliances, and the cooperation on the value chain and in that way enterprise can earn greater benefits is the resources complementary and mutual learning to each other exists between the enterprise resources, including core ability and knowledge and assets.The concept of Strategic alliance was also raised at the first time by Jane Hopland, the DEC Company’s CEO, and a management expert RogerNigel. But the definition of the concept of strategic alliances, there are significant differences in the academic circle. Scholars understand and define it from their own point of view of research respectively, the more representative are the following:1. Porter, from the perspective of strategic management, believe that strategic alliances are long-term joint agreement which beyond normal market relations and have not reached the level of merger. Alliances, including technology licensing production, supply agreements, marketing agreements and joint ventures. Porter argued that without the need to expand business enterprise of the alliance, we can expand the size of the market boundaries.2. Williamson, from the view of the nature of organizational, pointed that business alliance is the organization of marginal status which is between layers of tissue and market transactions. And it is a kind of governance structure for the business transaction when the contract is incompleteness. It is also a special system of enterprise managing. Compared to the dynamic market and enterprise change, the contract of market transaction relationship between enterprises presents the imperfection because of the essence of incomplete information. Incomplete contract means the possible that the optimize configuration to the property right efficiency in the enterprise trades , strategic alliance is regarded as a kind of governance structure under the condition that contract is incomplete. It is the supplement of enterprise market’s transaction behavior.3. Tees, from view of resource integration, pointed that strategic alliance is two or more than two business partners to achieve resource sharing, complementary advantages, strategic goals and to trust and commitment to feature cooperative activities. Specific include: exclusive to the purchase agreement, exclusive production cooperation, technology exchange, R&D agreement, cooperation agreements and joint marketing.Specifically, strategic alliance is that two or more than two companies, with anticipation of the market and the company's overall business objectives, operating risk, in order to the company common strategic objectives, through various protocols, to form a organization which has the feature of complementary advantages and risks of loose. The establishment of strategic alliance, essentially through the cooperation among enterprises, is to implement the complementary form of advantage resource and allocation of risk, and to make up for the inadequacy of market transaction, thus creating value for enterprises. A strategic alliance is a partnership between firms whereby resources, capabilities, and core competences are combined to pursue mutual interests.A strategic alliance is when two or more businesses join together for a set period of time. The businesses, usually, are not in direct competition, but have similar products or services that are directed toward the same target audience. Strategic alliance is a primary form of cooperative strategies.3. The practice of AppleSince the concept of strategic alliance was raised by Jane Hopland and Roger Nigel, strategic alliance had become focus of management scholars as well as the business world. When it comes to resources, enterprise rarely is self-contained; therefore combo would occur naturally with other enterprises which lack of other resources. Constructing alliance has become a common means to enter the international market, which also become one of the three strategic to realize rapid growing.Strategic alliance includes not only the equity joint venture enterprise; it also contains the equity agreement related to production, marketing and distribution, the R&D. The successful construction of Apple is not only the initial cooperation agreement on cross licensing arrangements, joint development, joint ventures, and equity and sharing union, it also includes thedetails such as site choice, cost allocation, market share and knowledge innovation, technology and collaborative design methods as well.Graph: Apple’s strategic alliancesApple’ strategic alliances include three pattern s ---- alliance with the hostile firm which is in the same industry, alliance with the firms of the same production chain, alliance with the noncompeting companies. All of the alliances bring a lot to Apple, including profit, fame, market share and competitiveness and so on.3.1 pattern one (Alliance with the companies of the production chain)Apple has launched delicate products with the benefit of constantly companies’ alliance and finally wins the whole market. Every step showed the concept of innovation and the remarkable operation of various elements of R&D design, development, production and manufacturing, marketing and so on. Like "why enterprise exists transaction costs", all the steps are focused on "what sparked interconnected motivation of economic behavior person", or “How to improve our economic output with such a connection”. Knowing themotive is definitely a key part of the understanding of the unions of business groups. Apple possessed the typical characteristics of integration innovation paradigm through the lateral and axial union between the enterprise of upstream as well as downstream.Example: cooperate with SamsungIn August, 2007, Apple and Samsung agreed that it would use Samsung 40% of flash memory chips production. This will help to expand the field of Apple products in the market, while Samsung also can enhance the competitive strength.Now because of the iPod's market influence, flash memory for Apple is extremely useful. And Samsung is the world's largest manufacturer of flash memory chips. In the future, Apple will be the largest NAND-type flash memory customer of Samsung. According to a report issued from the market research firm I-Suppli, that due to the success of Apple's iPod Shuffle, Samsung flash memory business will be greatly promoted, so Samsung is hoped to provide greater discounts for Apple. According to the agreement, Apple will account for 40% of flash memory business production of Samsung. While Apple's iPod Shuffle was a great success, but it is also accused by the industry, that such products do not display, users can not see the selected songs. From the consumer point of view, with the price higher, the storage capacity of 2G-4G iPod with the screen is the love of market.Apple and Samsung branded bulk supply contract, Samsung will also benefit. ISupplian analyst Nam Hyung Kim said that in the first half of this year, Samsung introduced flash memory chips of a value of 24.5 billion, which operated profit 40%. "This means that Apple will have more room for price cuts." Samsung committed to provide the best price for the Apple. In the past few years, Toshiba and Hitachiare are also major suppliers of Apple's iPod.Most recent quarter, Apple sold 6.1 million iPod players, while sales of the iPod Shuffle has not been exceeded. The latter's sales revenue reached 11 billion U.S. dollars, 30% of Apple's total revenue. Kim said that if Apple introduced a flash-based mini-Pod, will be sold 3000000-600 products this year, which will make the sales of global NAND flash memory chips increased by 22%.Samsung expects, the sales price of NAND industry will decrease overall, mainly result in the high volume supply contract that Apple and Samsung reached. This move will make the two competitors of Samsung ----Toshiba and Hynix feel stressed.AnalysisThe strategic alliance that Apple established with Samsung allows Apple to concentrate on activities that best match its capabilities and make profit. On the other hand, Samsung will be able to beat its competition by selling to a larger target audience.3.2 pattern two (Alliance with the hostile firm which is in the same industry)Example: cooperate with MicrosoftApple reconciliation with the rivals of Microsoft after Steve jobs back to apple. Apple has integrated Microsoft IE browser into the apple operating system, and Microsoft has invested $150 million (Microsoft has bought $150 million apple stock) to Apple in return. Moreover, Microsoft will continue to develop software for apple machines. At the same time, Apple withdrew technical license in compatible manufacturer, which means they can no longer rely on apple's technology. The first half of 1998 was the time of iMac, and apple was finally out of the red. The performance of the company appeared its fast growth.Microsoft versus Apple has long been the marquee rivalry of the technology industry, but the two companies also have a long history as friends. Here are their 10 greatest collaborations.For more than two decades, Microsoft and Apple have had the technology industry's most high-profile (and occasionally most rancorous) rivalry. But today, I doubt that either of them considers the other its chief rival.If you could sequester Apple CEO Steve Jobs and Microsoft CEO Steve Ballmer in their respective offices, close the door, and ask (off the record) for the name of their top rival, I suspect both of them would give you the same answer: Google.For that reason alone, you'd think Microsoft and Apple would be more likely than ever to collaborate (and that's certainly a possibility). However, it's also easy to forget that the two companies have a long history of working together and developing products for each other's platforms. They are traditional friends.Microsoft's recent release of Office for Mac2011 (more on that in a second) is only the latest example of times when the two have been on the same page. These are still the exception rather than the rule, but we've come up with a list of the 10 best collaborative moments between the two companies.1. Microsoft develops Word for the original MacintoshWhen Apple developed its forward-looking Macintosh computer in the early 1980s to combat the IBM PC, which was outpacing the Apple II, Microsoft was one of the early believers in the new vision. Gates took a chance on Jobs' graphical user interface and agreed to be one of the early application developers. The result was Microsoft Word, which would eventually be one of the computing world's most popular applications. Gates said, “One of the most fun things we did was the Macintosh and that was so risky. People may not remember that Apple really bet the company.” Ofcourse, the collaboration on the Macintosh also led to Microsoft developing its own competing platform, Windows, which later became the source of the bitter rivalry between the two companies.2. Apple makes iPod compatible with WindowsA year after Apple debuted the iPod in 2001 as an accessory it hoped would buoy Mac sales, the company realized the iPod had much greater mass market potential and decided to make it compatible with Windows computers as well. That development, combined with the 2003 opening of the iTunes Music Store selling songs for 99 cents, set the iPod on a course to become one of the best-selling consumer electronics products of all time.3. Internet Explorer becomes the default browser on MacAs part of that 1997 deal, Apple agreed to make Microsoft's Internet Explorer the default Web browser for Mac. At the time, Microsoft was in a pitched battle with Netscape for Web-browser supremacy. It's easy to forget that Internet Explorer 3.0 for Mac was a decent piece of software at the time, because Microsoft had a lot of engineers working on IE. Later, IE would get a well-earned reputation for being slow, bloated, and buggy, after Microsoft won the browser war and lost interest in it. But in 1997, having two great Web browsers available for Mac (three if you count Mosaic) was a good thing, especially on the eve of the iMac and with lots of new consumers buying computers to connect to the Internet.4. Microsoft invests $150 million in AppleWhen Steve Jobs returned to Apple in 1996 and soon became the interim CEO, one of the things he emphasized to Apple employees was to stop thinking about the past and Apple's old rivalry with Microsoft and start thinking about the future and how Apple could move forward in bold new ways. At Macworld 1997 in Boston, he sent the same message to Apple fans when he announced a deal with Microsoft that would bring a close to Apple's legalaction against Microsoft over Windows, provide a $150-million Microsoft investment in Apple, and bring a multiyear guarantee that Microsoft would continue to develop software for the then-ailing Macintosh platform. To the Apple fans who booed Jobs when he brought in Microsoft chairman Bill Gates via video conference to announce the Mi crosoft deal, Jobs said, “We have to let go of the notion that for Apple to win, Microsoft has to lose.”5. Microsoft licenses Exchange ActiveSync for iPhoneWhen the original iPhone was released in 2007, its primary accomplishment was a touchscreen user interface that made smartphones accessible to more than just the e-mail-junkie professionals who had previously owned BlackBerry and Palm Treo devices. However, the first iPhone was not very useful. It had limited software, and it couldn't easily connect to corporate e-mail. Apple fixed both of those problems a year later with version 2.0, the iPhone 3G, by opening up to third-party developers and licensing Exchange ActiveSync from Microsoft so that iPhone could connect to Exchange e-mail, calendar, and contacts.6. Boot Camp installs Windows on Mac hardwareIn 2006, Apple switched the Mac platform from proprietary PowerPC processors to standard Intel x86 chips — the same ones that had traditionally powered most Windows PCs. Later that year, the company released Boot Camp , a free utility that allowed Windows XP to be installed on the new Intel-based Mac hardware and dual booted with Mac OS X. (Boot Camp later supported Windows Vista and then Windows 7.) Naturally, Microsoft didn't object because Boot Camp required a Windows license.7. Snow Leopard connects to ExchangeIn Mac OS X 10.6 (Snow Leopard), Apple integrated support for Microsoft Exchange into its built-in apps: Mail, iCal, and Address Book. Unfortunately, this required Exchange 2007 or later on the backend, and theintegration was a little buggy. Still, it was another step toward making Macs more friendly in the many businesses that are run on Microsoft software in the server room.8. Apple makes Safari available for WindowsSteve Jobs once jokingly compared Apple making software for Windows to “offering glasses of ice water to people in hell.” A few weeks later, Apple launched a version of its Safari Web browser for Windows. Although Safari has never taken off and gained big market share on Windows, it does have a niche appeal to those who like the sparse UI and quick-loading times. It also represents one of Apple's most open initiatives, the WebKit browser engine that powers Safari. Apple refined it from earlier technologies and then turned it into an open-source project that has since been used by Google, Nokia, Palm, BlackBerry, and others.9. Apple and Microsoft spurn Blu-ray for digital downloadsBoth Apple and Microsoft have been under pressure for the last couple of years to get on the Blu-ray bandwagon. Microsoft has been under pressure to put Blu-ray in Xbox 360, and Apple has been under pressure to put Blu-ray drives in Macs. However, both have resisted and have responded with the same reason: Blu-ray is an expensive, temporary solution, and the future of high-definition video is digital downloads. While they may not have consulted each other on this issue, the fact that each has taken up the same position has made it easier for the other to stick to it. It has also kept the movie industry from forcing consumers to buy more discs rather than offering the cheaper and more convenient option of digital downloads.10. Microsoft launches Outlook for Mac in Office 2011With Office for Mac 2011, released on October 26, Microsoft has once again made the Mac OS X version of its world-dominant productivity suite jibe a lot more closely with the latest Windows version. This is in contrast toseveral Mac editions that diverged wildly from their Windows counterparts in recent years. But by far the most significant part of Office 2011 is that it brings back a version of Microsoft Outlook for e-mail and Exchange syncing, replacing the Mac-specific Entourage (a horribly buggy piece of software). This makes the latest Macs much better equipped to function in the business world.AnalysisMicrosoft was the software industry overlord, and apple computer get better software support when making cooperation with Microsoft. Jobs solve the Apple Issue "has a good machine without good software support" of former CEOs.In addition, since the agreement in 1997 was signed, more than 3 million Macintosh computers have shipped with Internet Explorer 4.0 as the default browser. Microsoft has sold more than 1 million copies of Office 98, and Microsoft and Apple have worked together to provide a unified Java Virtual Machine for Macintosh customers. Apple's new iMac computer, which includes Internet Explorer as the default browser, has been selling like hotcakes, and nearly one-third of its purchasers are new Mac users.Apple’s alliance with Microsoft proves that there are no eternal enemies, only the interests of the eternal.3.3 pattern three (Alliance with the noncompeting companies)Example: cooperate with NIKEMay 23, 2006, in New York—Nike and Apple announced a partnership bringing the worlds of sports and music together like never before with the launch of innovative Nike+iPod products. The first product developed through this partnership is the Nike+iPod Sport Kit, a wireless system that allows Nike+ footwear to talk with your iPod nano to connect you to theultimate personal running and workout experience. That sensor talks to a small wireless receiver that attaches to Apple's iPod nano music player.Smarter than smarter.The components work together to give voice prompts, interjected while music is playing, that tell runners how far they've gone and at what pace. The iPod will also keep track of the duration, distance, and other information on each run. The data could then be uploaded to a Mac or PC, and from there to a Nike Web site called , where users can track progress, set goals, and share results. The shoes will sell for about $100. The sensor and iPod attachment will go for about $29 The Nike+iPod Sport Kit and are expected to be available in the next two months.Nike dreamed up the idea for the product and contacted Apple to develop the technology behind it, Nike CEO Mark Parker said at the news conference: "A while back we asked a big question: Could we harness the power of digital technology to improve a runner's experience?" It turns out the answer is a smart running shoe, equipped with a small sensor that can track motion and distance and other metrics that runners find important, but the information would only be available after their run is complete, not while running. "We quickly realized that making a smart shoe wasn't smart enough."So Parker called a friend: Apple CEO Steve Jobs. The result was the kit, which both called simply a "great start." The two companies will develop more products as part of an ongoing partnership.Design difficulties. The two companies are alike in design and marketing. Both are iconic brands that appeal to a consumer market that is young and considers itself hip and cool. Apple had approached Nike about being its MP3 supplier, but Nike execs came up with a bigger idea. Parker said he wanted to give more than just music to the runner. "Obviously, a lot of that was already happening," he says. "If the shoe and the iPod could talk to each other, what would they say and what's the potential of that connection? We gotthe creative side from both companies and we started exploring."When Nike and Apple designers met for the first time 18 months ago, the teams clicked. "Both companies are technology-driven companies," Jobs says. "It's just that we work in completely different areas of technology. We are semiconductors and software, and Nike is anatomy and precision-molding and thin-film technologies. What's interesting is the people are very similar."But it took some time for both teams to find their Zen state. Some of the technology challenges were tough. The sensor embedded in the new Nike Moire running sneaker was initially too big for Nike designers and too small for Apple's team. Other technical challenges centered on the duration of the battery power (close to 1,000 hours). Apple designers also had to wrestle with the wireless technology. "Wireless takes power," Jobs says. "The last thing you wanted was a wire going down your leg. It looks deceptively simple and that's how it should be. It took a while to get it right. But there is a lot of technology there."Beautiful friendship.Jobs also says keeping the price at $29 for the wireless iPod adapter was another key point. "This thing is over 90% accurate right out of the box, which is huge," Jobs says. "Something like this would normally cost a lot more money. We priced it so everyone can afford it because we want everyone to try it and experience how cool it is."Parker says Nike is offering seven styles of shoes that will be iPod-ready by allowing the sensor to be embedded into the heel. They include the new Nike Air Zoom Moire, unveiled today, as well as the Nike Shox and Air Max lines. About 4 million "PlusReady" shoes are available now and next the number could balloon to 10 million, Parker says. "If you need stability or extra cushioning, we have shoes to fit those needs that will be wired," he says.Both CEOs say the experience of developing NikePlus is just the beginning of a broader strategic relationship. Neither would describe whatthey intend to tackle next but hinted they are only limited by imagination and good business. "It's turned out to be really fun," Jobs says. "It's fun to apply technology in an area where A, it's never been done before, and B, everybody involved in it wants it for themselves. That's always a good sign. Everybody involved in this says, 'This is so cool,' It's great to work on things like this." Says Parker: "The connection between the two different products and the potential it creates is huge."No brainer. Apple and Nike aren't the first to try to crack the market for electronic gadgetry aimed at fitness enthusiasts. Nothing aside from the digital wristwatch has been all that universally successful, except digital-music players like the iPod and the Sony (SNE) Walkman before it. Nike has dallied in the digital-music realm before, having teamed up with Philips Electronics (PHG), and the now-defunct Rio before that, on MP3 players aimed at athletes.Garmin (GRMN), the Kansas-based market leader in consumer GPS receivers, has been producing watches for runners that use the Global Positioning System to track a runner's training regimen. Its Forerunner products start at about $115 and, with certain options and features, can go as high as $377.But to Trevor Edwards, Nike's vice-president for global brand management, the connection with Apple is obvious. "I think there are some ideas that you kind of go, 'Duh.' People are already out there running, and they run with music," Edwards says. "And some of them are trying to figure out how far they went. So we think this is already something people are doing. So you take their behavior and actually allow them to do it in a more simple way."At the same time, apple also actively establish different company unions in many different fields, such as the cooperation with NIKE, it will be the first time of the combination of the music and sports which means innovative series。
