Alliance Mania

Alliance Mania On December 16, 1999, Best Buy Co. Inc and Microsoft formed a long-term alliance called ?comprehensive strategic alliance?.The existence of the complementary sales and distribution channels between those two parties was the main driving force of the alliance. According to Best Buy Chairman and CEO Richard M. Schulze, ?A deciding factor in forming this alliance is Microsoft?s ?Everyday Web? vision, making the web as prevalent as the telephone and even more useful in our customer?s daily lives.? (Roger Yu, 1999). Microsoft wanted to increase its customer base and narrow the gap with the ISP market leader American Online. Best buy, as the nation?s largest volume retailer of consumer electronics, computers, entertainment software and appliances, has the resources to help MSN to achieve its ?Everyday Web? vision. Under the alliance, Best Buy would promote Microsoft Network (MSN) through in-store instant rebates to new computer purchasers, and sell other Microsoft Digital products in its m ore than 350 electronics and office stores in 37 states.English: