Raymark Technologies (Raymark) is a small, highly successful high tech firm. Much of Raymark's success can be attributed to its close relationship with Sentor Equipment (Sentor), a multi-billion dollar firm. Sentor owns 50 percent of Raymark and is Raymark's primary customer. The question facing Steve Thomas, founder and President of Raymark, is what shape the relationship should take in future years. While the relationship has been largely positive for Raymark, Senior management has made it clear that they would like to own all of Raymark because its products play an increasingly important role in Sentor's product strategy.
This case has two primary objectives. One is to address the question of what is a strategic alliance. Top management at Raymark view their relationship with Sentor as a partnership. However, Sentor is a very large company that owns 50 percent of Raymark, a much smaller firm. Is the relationship an alliance or is Raymark owned and controlled by Sentor? The second objective is to consider on-going relationship management and partner bargaining power.