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.
• Tocreate 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.
CASE STUDY
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.