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Remix Strategy: The Three Laws of Business Combinations
by Benjamin Gomes-Casseres
Published: 2015
Recommended by Books of the Channel
Categories: partnerships
Why should you read it?
This book is valuable because it addresses a gap many managers face when working with alliances, partnerships, and other business combinations. While there is extensive guidance on how to structure and manage these deals, there is far less clarity on how they actually create value. Gomes-Casseres provides a clear framework to help leaders answer fundamental questions: what kind of combinations to pursue, how they will be managed over time, and whether they will generate returns that justify the investment. It is particularly relevant in a context where partnerships and external collaborations are no longer optional, but central to competitive strategy.
What is the book about?
The book introduces the concept of "remix strategy," where companies combine resources, capabilities, and market access with external partners to create new value. It argues that business is increasingly "outside-in," with alliances, joint ventures, and other combinations becoming core to how companies compete. At the center of the book are three laws that define successful combinations: first, the combination must have the potential to create more value than the parties could achieve alone; second, it must be designed and governed in a way that actually realizes that value; and third, the value created must be shared in a way that rewards each party's investment. These laws provide a framework to evaluate, design, and manage partnerships across different types of business combinations.
Best takeaway
Successful business combinations must meet three conditions: they must create joint value beyond what each company could achieve alone, they must be governed in a way that turns that value into reality, and they must distribute returns in a way that motivates each party to keep contributing over time. These are not best practices, but necessary conditions for success.
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