IBM Smarter Buildings

: strategic alliance – friend or fowl?

Abstract

This thesis aims to provide a teaching case study in the area of strategy by developing the strategic alliance case of IBM and Schneider Electronic in Portugal. The goal is to offer students a ground for class discussion where they can apply strategic frameworks to a practical case. IBM, one of the largest multinational technology and consulting corporation is presently introducing a new product: an energy management solution for buildings. In order to ensure the success of the new product IBM has to decide on a market entry strategy. One of the possibilities at hand is to engage into a strategic alliance with another company, possibly Schneider Electric. This topic of strategic alliances will form the focus of this case study. The strategic decision of whether to enter a partnership will require the analysis for main implications, potential advantages and practical challenges of such. The paper is divided into three sections: The first presents the case itself with an introduction of the main characters, the companies and the business situation. The problem structure and business decision is presented with detailed background information on the current market and competitors. The second part contains the literature review where relevant theory and useful frameworks are presented. The literature works as a linkage between the case study and the teaching note in the last section. The teaching note gives detailed guidelines for instructors on how to apply the case in class and suggests main discussion topics and key questions to allow in-depth analysis for students.

Date of Award	26 Jul 2013
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)