While this may initially create some internal resistance to the joint venture, in reality it creates an excellent opportunity for each organization to focus on the activities in which they have a sustainable competitive advantage. They can move resources out of areas in which they can't excel and allocate more resources to areas in which they can excel. This is why a thorough review of a company's strategic plan is so crucial to the success of alliances. Some companies have been disappointed by the alliances they form with other organizations because successful implementation is not easy. It is important to any venture that both sides have a clear idea of how long the alliance will last and how it should be terminated.
Successful conclusions are as important as good starts.
The single most important factor in the failure of joint ventures is when the parties involved fail to consider the relation of the alliance to their organization's overall plan. Chances for success increase when the parties recognize that competencies, which are not core to their own operations, can be shared. Our industry is going through a period of change that creates a tremendous opportunity to improve and try new ideas. To take advantage of these opportunities and to maximize value for customers and share- holders, companies should consider excelling in carefully selected ways and joining with organizations to get expertise in other areas.