December 4, 2018
Alliances, joint ventures (JVs) and other strategic partnerships have long been an option for companies seeking to expand their market reach. But a recent PwC analysis reveals that these business relationships have seen an upswing in recent years, with the combined number of alliances and JVs at its highest level since the start of this century.
PwC analyzed more than a quarter-century of data on global alliances and JVs. In addition to more partnerships overall, the analysis found that a growing number of alliances and JVs involve companies in different sectors. That shift reflects the blurring of traditional lines between industries, as consumers increasingly expect goods and services to be interconnected, and businesses try to make their supply chains more efficient and effective.
Alliances and JVs also have become a way for businesses to navigate a variety of forces that are reshaping their growth strategies. Technological disruption, geopolitical tensions, regulatory changes and demographic shifts all introduce complexities to business models, presenting corporate and private investors with a New Deal Frontier. Few companies can afford to follow their previous deal blueprints as they adapt to these influences, and a strategic partnership can be the tip of the spear when it comes to exploring a new path to growth.
Learn more about what’s driving the increase in alliances and JVs in “Why Your Next Deal May Be a Partnership,” a strategy+business article by Bob Saada, PwC’s US Deals Leader, and Benjamin Gomes-Casseres, author of Remix Strategy: The Three Laws of Business Combinations.