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Microsoft & Facebook Strategic Alliance. Group6 Mathurin Eurpaiboon 4980544 Jindamas Mitsattha 5080262 Wanranee Sirisathaworn 4980164 Samantha Lamph 4880612. Free Powerpoint Templates. Topic. Company History Brief Industry Analysis Motives and Fits Alliance Structure

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  1. Microsoft & Facebook Strategic Alliance Group6 MathurinEurpaiboon 4980544 JindamasMitsattha 5080262 WanraneeSirisathaworn 4980164 Samantha Lamph 4880612 Free Powerpoint Templates

  2. Topic • Company History • Brief Industry Analysis • Motives and Fits • Alliance Structure • Type of Alliance • Impacts on Stakeholder • Main Issues/Problem • Key Failure Factor • What’s learnt?? / Future Direction

  3. Company history

  4. Industry Analysis • People’s lifestyle in nowadays has been changing to be more technology and social-networking-oriented • Internet sharing trends have heavily shifted toward social networking. • Social networks saw a 10% increase in usage, and a 16% raise in click-through (SocialTwist)

  5. Motives Directly effect the revenue of the company Fits

  6. Alliance Structure

  7. Type of Alliance • Alliance to Beat Competitors : Both parties are aiming to gain the upper hand over the competitor. (FacebookVS MySpace ,and Microsoft VS Google.) • Investment: Microsoft invested in Facebook so that it could be the only banner advertisement provider.

  8. Impact on Stakeholders • Customers– Customers get Convenient in using Services provided by both parties. • For example : Facebook user can just simply use the service of Microsoft’s Docs right awat without having to register for new account • Competitors– Competitors such as Google or Twitter are threatened by the alliance between Microsoft and Facebook • Jan,2010 : Market share is 65.4%, 17.3% and 10.7%, ranking from Google, Yahoo and Bing respectively. Eventhough,Bing is ranked number 3, Bing’s popularity is growing at an impressive rate of 11 percent comparing to Google 3 percent

  9. Main Issues / Problems • Distrust • Microsoft’s standard banner ineffective • Facebookstarting using their own advertising before the end of the contract which leads to the distrust of Microsoft. • Poor Negotiated Contract • Poorly manage the resources allocation and profit sharing • Integrative  Distributive • Not benefit alliance

  10. What’s Learnt ??? • NEGOTIATED CONTRACT is very IMPORTANT !!!! • Both parties should clearly negotiate of how to allocate resources and benefit at the beginning of the alliance for mutual benefit • POTENTIAL PARTNER ASSESSMENT is also IMPORTANT • To ensure a fit of needs an their ability to perform duties to make the alliance successful

  11. Key Failure Factor of Alliance • Poor negotiated Contract • Blurred Scope of Alliance Future Direction • FB could give info to MS to develop new program to suit with customer ‘s need • MS could develop software and hardware to support the function of FB

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