Dream Works SKG, another alliance, was formed in 1995 under the joint leadership of Stephen Spielberg, Katzenberg (formerly head of walt Disney pictures), and David Geffen (head of Geffen Records). in march 1995, Dream works announced that Paul Allen, a co-founder of Microsoft, had invested 500 million in the venture this was soon followed by an announcemeant that Microsoft had signed a development agreement with Dream Works, accompanied by an undisclosed sum.
these alliances cut across industry lines. this diversity suggested that member companies would perform different roles within the alliances. jack McPhee, director of the office of computers and business equipmant for the U.S. departmant of commerce, said Taeming and strategic alliances have become the order of the day
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broderbund is management believed that new competitors, including large software companies and other large media companies, were bound to increase their focus on the consumer software market, resulting in a proliferation of products. and increasingly fewer opportunities for small software companies to enter. Currently,there is a proliferation of products competing for shelf space in many of our channels. in the future we expect there to be more industry consolidation as growth slows. people will start to look for partners when they feel the pinch, said mcdonagh.
to remain successful, smaller vendors needed to find and exploit niche markets that were nutapped by major vendors. to sell these products,smaller vendors needed to develop and maintain relationships with consumer-oriented distribution channels