Alstom (B): The Joint Venture with ABB

In March 1999, Alstom's chairman was reviewing the forecasted results of his company¿s first year of operation and he had plenty of reasons to be proud of the achievements of the company in only oneyear of operation. Alstom was a French giant in the energy and transportation business. Although the results looked very promising, competing in this industry required a strategy. The matter was complicated by GE's unwillingness to continue the license for the core technology of the power generation business. Hence, if no new technology partner were found, Alstom would be left without access to the important gas turbine technology very soon. The case presents potential partners for this technological alliance.