Changes in industry structure and competition: the use of strategic alliances by UK defence manufacturing firms

Abstract

? This paper outlines the changes which have occurred in the business environment for UK defence manufacturers over the last 10 years. It highlights how the opening up of the UK market to foreign competition has compelled UK firms to become more aggres- sive on the export market. ? UK firms have responded by increasing their use of cross-border strategic alliances as a means of accessing emerging markets as well as acquiring technology and sharing costs with firms from the USA and Europe. ? Specifically the paper analyses and discusses the drivers of change and restructuring within the industry;the characteristics of UK firms using cross-border strategic alliances; the characteristics of alliance structures and partners; the motives for forming alliances and the relationship between the buyer and suppliers.