2. STRATEGIC ALLIANCES
Strategic alliances are cooperative agreements
between two or more companies to work
together and share resources to achieve a
common business objective.
3. WHY STRATEGIC ALLIANCE..?
• Sharing Resources like products, distribution
channels, manufacturing capability, project
funding, capital equipment, knowledge,
expertise, or intellectual property.
• To create Synergy – to gain competitive
advantage
4. TYPES OF STRATEGIC ALLIANCE
• Joint venture - Legally Independent Company
• Equity strategic alliance - own different % of the company
• Non-equity strategic alliance - A Contractual - Relationship
• Global Strategic Alliances - working partnerships between
companies – across national boundaries or May be between
foreign government.
6. ADVANTAGES
• Allowing each partner to concentrate on
activities that best match their capabilities.
• Learning from partners & developing
competences that may be more widely
exploited elsewhere.
• Adequate suitability of the resources &
competencies of an organization for it to
survive.
7. DISADVANTAGES
• Technology – Low Cost Manufacturing.
– US & Japanese Companies
• Organization Culture.
• Competition – How to Compete in future.
8. KEY FACTORS OF STRATEGIC ALLIANCE
Select the proper partners for the intended goals
Share the right information
Negotiate A deal that includes risk and benefit
analysis (not necessarily equal) for all sides.
Come to a realistic agreement on the time to
market and corporate expectations
Mutual, flexible commitment on what's
appropriate to change, measure and share within
each partner's culture
9. PROCESS OF STRATEGIC ALLIANCE
Setting alliance strategy
Selecting a partner
Structuring the alliance
Managing the alliance
Re-evaluating the alliance
10. STARBUCKS
• Barnes and Nobles bookstores in 1993
• In 1996 - Pepsico to bottle distribute and sell
the popular coffee-based drink Frappacino.
• A Starbucks-United Airlines alliance has
resulted in their coffee being offered on flights
with the Starbucks logo on the cups
• Kraft foods has resulted in Starbucks coffee
being marketed in grocery stores.
11. APPLE LTD
• Apple has partnered with Sony, Motorola,
Phillips, and AT&T in the past.
• Apple has also partnered more recently with
Clearwell in order to jointly develop
Clearwell's E-Discovery platform for the Apple
iPad. E-Discovery is used by enterprises and
legal entities to obtain documents and
information in a "legally defensible" manner.
