The rise of strategic brand alliances is ever increasing and have become an alternative
to brand development and extension for many companies.
Interbrand (Blackett et al.,
1999) identified three trends behind this development. First, speed to reach the market is
a massively important competitive attribute, second, scarcity of resources
which increasingly impedes the ability of any one company, operating in isolation, to
exploit market opportunities in a timely way. Finally, joint-ventures, alliances and mergers
feature more prominently as a way of enabling businesses to achieve the two
preceding requirements. The focus-shift from strategic alliances to strategic brand alliances can
be illuminated through the relationship between tangible and intangible assets as percent
of market capitalization. In 1988, 56% of market capitalization was based on
intangible assets. In 2008, the number has increased to 85% (Blackett et al., 1999). According to McKinsey, the number of brand alliances is increasing by 30% a year and it is
estimated that more than 25% of the products that are consumed would be the result of
brand alliances and more than ever, luxury brands are becoming involved in brand alliances,
as noticed by a luxury brand alliance strategist (Dive, 2006):
Car manufacturers have long had associations with watchmakers (Jaeger
Lecoulture with Aston Martin, Brietling with Bentley, Officine Panerai with Ferrari,
Audemas Piguet with Maserati, Chronoswiss with Spyker, etc.). This is now extending
into other areas: Porsche and Aston Martin have partnerships with hi-fi specialist
Bose and Linn respectively, Mercedes had a limited Edition of its CLK entirely
designed by Giorgio-Armani and Jaguar, while launching its new XK model, entered into
an agreement with designer Zac Posen. |
