Alternatives
One option in pursuing their long term partnership is to form a non-equity alliance. This is a horizontal alliance that is strategic, limited in scope and basically an agreement for both companies to share their resources while remaining independent organizations. Leica and Huawei are complementary to each other’s products but operate in the same industry. Therefore, it would be beneficial and easier if they were to operate as separate organizations rather than going through the complexities of a merger or acquisition. Leica offers resources such as a strong brand image, representing “German engineering at its best” and is highly experienced in the field of microscopy with glass and lens expertise that has proven to be of the highest caliber. They have also been through ownership transitions before and were on the verge of bankruptcy when they were bought by Blackstone Group. Eventually, they became completely privately-owned in 2011 but their management has actively pursued the idea of a strategic refresh to become software and service providers as well. Leica would be able to utilize the alliance with Huawei to expand into other markets while they both tackle increased competition and challenges that the digital era offers. The advantage of doing a non-equity alliance is that the culture of the two companies will not have to be integrated and they can both continue to operate in their own silos. This is important for Huawei since their “wolf-like” culture
One option in pursuing their long term partnership is to form a non-equity alliance. This is a horizontal alliance that is strategic, limited in scope and basically an agreement for both companies to share their resources while remaining independent organizations. Leica and Huawei are complementary to each other’s products but operate in the same industry. Therefore, it would be beneficial and easier if they were to operate as separate organizations rather than going through the complexities of a merger or acquisition. Leica offers resources such as a strong brand image, representing “German engineering at its best” and is highly experienced in the field of microscopy with glass and lens expertise that has proven to be of the highest caliber. They have also been through ownership transitions before and were on the verge of bankruptcy when they were bought by Blackstone Group. Eventually, they became completely privately-owned in 2011 but their management has actively pursued the idea of a strategic refresh to become software and service providers as well. Leica would be able to utilize the alliance with Huawei to expand into other markets while they both tackle increased competition and challenges that the digital era offers. The advantage of doing a non-equity alliance is that the culture of the two companies will not have to be integrated and they can both continue to operate in their own silos. This is important for Huawei since their “wolf-like” culture