Reference no: EM133156636

The top management of Bharat Glass International's (BI) claims that company's past successes as well as future growth strategies are driven by the portfolio of wholly owned businesses and joint ventures around built on BGI's core competency in glass making. The company's alliances and its owned divisions provide strength to compete in four sectors across the globe. First sector is the specialized glass and input materials, which is also used in making liquid crystal display and high-definition television. Second is the sector of consumer housewares, for example in the case of microwavable dishware. The third sector is one where the glasses are used as products such as test tubes etc. in science laboratory. Finally, the fourth sector is the communications, wherein the glasses are used in fiber optics and other technologies.

The annual report of the company for the financial year 2021-22 highlights the importance of sharing resources and capabilities, reducing redundancies and creating synergies across four segments with focus on cutting edge glass-making technologies and high value delivered to customers. Though in each sector, the company has its subsidiaries and alliances, the performance indicators clearly suggest that combined revenue of the portfolio of 25 alliances has been more than 150% of that of Bharat Glass International on its own. The alliance helped BGI to get the market access across the geographies, industries, and segments.

Question 1: Is the approach of BGI of building alliance portfolio for fast growth is justified? What risk you anticipate for the BGI due to the network of alliance?