Alliances between non-competitors. Among non-competitor alliances, the first to warrant mention is that of the vertical partnership of suppliers and customers. Strategic alliances in vertical relationships developed as a result of the transformation process of mass production to lean production. Traditional mass production means that the dominant producer has competence over the whole production process and subcontractors are trusted only with simple tasks on a strictly short-term contractual basis.27 According to lean production, first applied by Japanese car manufacturers, the whole process of production has to be performed with significantly lower costs, tighter production deadlines and without stocks. The first phase in the development of lean production was the ‘just in time’ production cooperation.28 This already represents something beyond the traditional supplier-producer relationship. The next development phase was strategic partnership, based on joint goal setting, mutual risk and competence sharing and consensus.29 This partnership is intended for a longer period, where suppliers and producers are depending on each other. They share the duties and responsibilities and pursue a continuous exchange of information to achieve cooperation based on trust. The other area of strategic alliances between non-competitors is the cooperation 24 Child and Xxxxxxxx 1998 (n 12) 34. 25 See in particular B Xxxxxxxx and X Xxxxxxxx, ‘Pattern of strategic alliances between rival firms’ (1995) 4 Group Decision and Negotiation 429 (Gartette and Dussage 1995); B Xxxxxxxx and X Xxxxxxxx, ‘Anticipating the evolutions and outcomes of strategic alliances between rival firms’ (1995) 27 International Studies of Management & Organization 104; X Xxxxxxxx and X Xxxxxxxx, Cooperative strategy: competing successfully through strategic alliances (Xxxx Xxxxx & Son Ltd 1999). 26 See in more detail Tari 1998 (n 5) 44-45. 27 ibid 82. 28 ibid 83. 29 ibid. across different sectors. This could be explained by the connection or convergence of different technologies and markets.30 Another reason could be the companies’ effort for diversification or focusing on a particular sector. In the latter case, the creation of a strategic alliance can allow the firm can to ‘get rid of’ the branches which are not focused on.31 Finally, the establishment of a strategic alliance, by combining capabilities, can serve the creation of new activities and consumer needs.32
