Alliance Property Management

Alliance Property Management is a phenomenon that once flourished in almost every sector of business. Competitive strategy and kill each other more and more abandoned. The argument is very simple alliance players. Instead of competing with each other off, why not join hands and work together are complementary and mutually beneficial? This logic seems easy to understand because of the keywords in the era of globalization is competition and efficiency. Obviously cooperation in the form of an alliance would bring many benefits for the company.

One striking trend in today's global economy is the growth and spread of property management alliance, with various forms of collaboration, both between companies and between groups on an international scale. This likely caused by fundamental changes in the global economy such as the increasingly intense competition, rapid technological developments, rising development costs, production costs and marketing costs of new products.

To compete in the global arena, anyone can not bear such a large fixed cost. Costs and risks to establish a distribution network, logistics, manufacturing, sales, and R & D in every key market throughout the world will be very large when borne alone. Moreover, it takes time to build up their own expertise of employees and building good relationships with suppliers. In turn, required business partner (partner). You need to define a strategy that allows for the mechanism of benefit.

Therefore, it is precisely the opinion Kenichi Ohmae (1989), that a necessary condition in the alliance, shifting the focus of attention of the ROI (Return on Investment) into ROS (Return on Sale). Orientation towards ROS means managers to focus on business benefits goes posed by the alliance, and not just sit idly and await the return on their initial investment.

Conclusion is consistent with the observation of Sasaki (1993) regarding the collaborative activities of Japan since the 1950's has changed from initially focusing mainly for technological know-how from abroad to focus on growing sales in the world market. The reason, no one company, no matter how great, can bear the investment is so great to dominate the world market.

Besides dreams to enhance synergies between partners and high ROS, alliance managers should be aware that managing the alliance is not as easy as many people expected. The success rate of property management alliance only 1 to 3. The high failure rate of this alliance is a warning for any manager.

OBJECTIVE ALLIANCE
The main purpose of the alliance is to enable a property management company or group to achieve certain goals that can not be achieved by their own efforts (Dicken, 1992:213-15). In other words, an alliance always share the risk as well as profit by bear joint decision-making to a particular field. Therefore, the strategic alliance is not the same as a merger, given the latter means dissolving the identity of the merger.

In a strategic alliance, only few business activities involved the alliance participants. In this regard, companies or groups not only remain separate, but often remains a competitor. Therefore, it is understandable that he passes the rationale of strategic alliances are taking advantage of a company and compensate for weaknesses with the advantages of the business partners. Strategic alliances can occur in the field of R & D, to processing, distribution, or marketing.

Actors alliance property management live in a progressive system, the connection will offer future options, opening up new doors and opportunities that were not visible before. Second, the alliance means collaboration (creating new value together) and not merely exchange (get a refund for what you provide).

An active collaboration occurs when the perpetrator alliance to develop mechanisms (structure, process, and skills) that bridges organizational and interpersonal differences, and get the real value of the alliance. Third, actors alliance can not be "controlled" by a formal system but requires interpersonal relationship network and internal infrastructure that enhances the learning process.

1. External Factors
Dunning (1995) says that changes in the external environment is the fundamental reason that affects the alliance property management. This change reflects the inability of internal resources to achieve competitive advantage. Therefore, in order to gain a complete understanding of the movement and the competitive strategy of a firm, we also have to understand the level of competition at the national, regional and sectoral.

We have to understand, not just a company that can freely choose their own strategy, but conditions there are changes at the national and sectoral also encourage them to make changes and reviewing strategy. Dimensional changes in the external environment that encourages alliances are as follows:

First, the process of globalization became the main force behind the growth of value-added activities across national borders, which in turn increases economic interdependence. The development of globalization brings a series of reactions, in which there is increasing trend of corporate activities-both domestically and internationally-that must be addressed not only through the product market internalization between the hierarchy (read: hirarchical capitalism), but through what has been called "capitalism aliance "(Gerlach, 1992; Dunning, 1995).

Secondly, the increasing internationalization and competition brings out the need to work together on a regional basis. In addition, because "the whole business is local" so companies need local partners to address local environmental and cultural differences. Third, the rapid development of technology, product life cycles are shorter, and the rising cost of R & D (R & D) has encouraged companies to create joint research and sharing of scarce resources.

Fourth, the emergence of many new competitors in the traditional business has forced companies are there to build relationships and expand networks closely. In addition, to create a barrier for new competitors.
Fifth, the shift from products towards competency forced the company to go out and look for complementary knowledge and new competencies. Consequently, when in the 1970s and 1980s, the alliance emphasizes on product and market driven, in the 1990s, the alliance-based collaborative knowledge and competence.

2. Internal Factors Which Become a motive and purpose of the Alliance
There are several reasons why companies struggle to realize strategic alliances, which can be explained by the internal and external conditions. The main stimulus for the alliance is the need to work together to achieve the flexibility, core competencies, and incentives stemming from autonomy, at the same time utilizing complementary resources for learning and efficiency.

The motive and purpose of the company is the main driver of the alliance, in addition to factors external environment. The motive and purpose of the establishment of strategic alliances at least include:
(1) technology (know-how);
(2) financial assets;
(3) competition;
(4) Access to the market segment;
(5) Access to inputs, outputs, and management experience;
(6) Resources and capabilities that complement each other.

Pros And Cons Alliance Property Management

Excess

The advantages of strategic alliances vary. This paper will focus on combining resources to be able to compete in a new business. Alliances typically arise when companies have a resource that can provide value in order to enter into a new business, but the company requires the assets of another company so that the company can effectively create such resources as a competitive advantage.

Weakness

Issues related to the weakness of the alliance strategy with regard to leadership, alliance partner contribution, control contribution, and business strategies.

Creating a clear company structure is very important in a strategic alliance. It can clarify issues related to the company's leadership during the alliance. In this way each party in the alliance demanded to know the motivations and incentives of each, both in the long term or short term.

In addition, each party alliance also need to know the needs and aspirations of its alliance partner. This is due to the needs and aspirations will continue to change. By knowing the needs and aspirations of each of the parties entered into an alliance to set goals and incentives agreed upon.

Competition may occur between alliance partners. Not uncommon among alliance partners instead turned into a competitor. In this case each of the alliance partners want to be a winner in the market and beat his partner. Who can benefit most from an alliance that will emerge as the winner. The alliance could succeed in working together if the goal is to meet resource; gaining access to assets and capabilities that are not owned by the company, or sharing the costs and risks in general.

Usually alliance designed as a short-term relationship, because it is considered as a form of strategic alliance is weak when applied to long-term. A fairly in-depth study conducted by Business Week (1986) noted a number of examples of joint ventures the following motivation. The results of the study showed varying strategic objectives venture businesses.

It should be noted, in any joint venture contract following some generally shared characteristics, the contribution by the partner in money, property, effort, knowledge, skill, or other assets is a common, cooperation is often included in the joint property, the right to control the mutually management companies, hope will benefit (presence of adventure), the right to share the profits, the goal is usually limited to a single engagement or ad hoc enterprise.