A Strategic Alliance is a relationship betweentwo or more parties to pursue a set of agreedupon goals or to meet a critical business needwhile remaining independent organizations.
synergy • technology transfer • economic• joining of forces • THE specialization and resources ALLIANCE • shared expenses and shared risk. THE cooperation or collaboration
key success factors of the alliance individual excellence Importance interdependence Invest Information institutionalization
Types of strategic alliances Equity Non-equity Global Joint strategic strategic Strategicventure alliance alliance Alliances
Stages of Alliance FormationStrategy Development alliances feasibility, objectives andrationale.Partner Assessment involves analyzing a potential partner’sstrengths and weaknessesContract Negotiation realistic objectivesAlliance Operation senior management commitmentAlliance Termination Alliance
advantages disadvantages Allowing each partner to Dealing with diverse or concentrate on activities that conflicting operating practices best match their capabilities. Learning from partners & Dealing with conflicting developing competences that objectives, strategies, corporate may be more widely exploited values, and ethical standards elsewhere. A strategic alliance could help a Becoming too dependent on company develop a more another firm for essential effective process, expand into a expertise over the long-term new market or develop an advantage over a competitor
examples A clothing retailer might form a strategic alliance with a single clothing manufacturer to ensure consistent quality and sizing. A major website could form a strategic alliance with an analytics company to improve its marketing efforts.