LG has long considered strategic alliances to be a key part of their overall approach. Here is one key example:
As I posted before, LG is making a new generation of smartphones featuring curved screens. They employed vertical integration, using their own chemical company to make the batteries and their own screen technology company to make the high-resolution screens. But software and operating systems are not within LG's core competencies, so LG entered into a strategic alliance with Microsoft for the phone operating systems.
This alliance is much more than LG simply purchasing Microsoft technology. The deal involves joint research and development efforts to achieve tighter integration between LG hardware and Microsoft software. It also encompasses an joint investment in marketing the phones. The benefits LG in that they get help marketing the phones and a name-brand operating system. And it benefits Microsoft in that their operating system gets on more phones and makes them at least a parity player with Samsung.
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