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Survey: Alliances Boost Revenues

Photonics Spectra
Jan 2001
Growing companies that are involved in strategic alliances expect higher revenues, on average, than do companies that avoid sharing resources, according to a recent PricewaterhouseCoopers Trendsetter Barometer survey.

The growth figure offers some cheer for photonics companies, which have embraced the alliance concept for years.

The consulting firm surveyed CEOs of 425 fast-growing American companies, finding that nearly two-thirds are involved in strategic alliances to share technical, marketing or other resources.

Product/manufacturing firms reported the most frequent alliance types as joint marketing and promotional arrangements, followed by joint sales/distribution, research and development contracts, technology licenses, production arrangements and design collaborations.

The CEOs of companies in alliances have predicted corporate revenue increases of 30 percent over the next 12 months, compared with 19 percent for those who are not in alliances.

The survey also found that alliances play a role in increasing market size: 54 percent of companies involved in alliances have international sales, compared with only 38 percent of those who aren't in alliances. The allied companies' CEOs said they expect higher international sales as a percentage of total revenue than do their unallied peers.

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