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[8] 2002 e-business-strategies-for-virtual-organizations

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e-Business Strategies <strong>for</strong> Virtual Organizations<br />

Figure 11.3<br />

Checklists <strong>for</strong> power<br />

shifts<br />

244<br />

To assess whether an alliance will evolve the partners in the<br />

alliance should plot how contributions are likely to shift as<br />

shown in Figure 11.3.<br />

Likely evolution is along four paths:<br />

� sustainable power balance;<br />

� power shift to global partner;<br />

� power shift to local partner;<br />

� competition, dissolution or acquisition;<br />

as shown in Figure 11.4.<br />

These vulnerabilities are all inherent within global <strong>virtual</strong><br />

alliances and must be recognized when global partnerships are<br />

<strong>for</strong>med. It is especially important to recognize that emerging<br />

market alliances pose different challenges to those faced by<br />

alliances in mature markets and are generally far less stable.<br />

Structural change in an industry is usually the result of<br />

cumulative processes leading to large-scale discontinuity. A<br />

<strong>virtual</strong> organization that wishes to take advantage of such<br />

discontinuity must have the ability to see it coming earlier than<br />

their competitors and to react more quickly and so require a<br />

focused strategy <strong>for</strong> change.

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