This document discusses different types of strategic alliances between firms, including short-term alliances to share knowledge, collusion alliances to neutralize price wars, complementary alliances to promote each other's products, bootstrap alliances where a strong company acquires a weak one, and alliances of the weak to preempt competition. It also discusses three main criteria for assessing strategic options: suitability for addressing a firm's strategic position and trends, feasibility in terms of resources and capabilities, and acceptability to stakeholders.

1.  It is an short term understanding between two or
more firms in a similar business to share knowledge
and skills in a particular domain or function for
mutual benefit (Eg. Tata Motors – Daimler Benz,
Reliance – Du Pont).
 Generic motives involved are –
 Enable learning organisation.
 Design next generation products.
 Effective R&D management.
 Move up on the experience curve.
 Enhance credibility.
 Preempt competition.
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2.  Collusion – Tacit top management understanding
to neutralise price wars (Eg. Coke – Pepsi).
 Complementary Equals – Two firms mutually
promoting each others complimentary products
(Eg. Whirlpool – Tide).
 Bootstrap – An alliance between a weak and a
strong company with an intention to acquire it.
 Alliances of the Weak – An alliance is entered into
to preempt competition (Eg. Airbus – Boeing).
 Backward – An alliance (quasi or tapered) with a
supplier of critical components seeking
commitment (Eg. Maruti).
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3. Success criteria are used to assess the likely of a
strategic option. There are three main success
criteria:
 SUITABILITY
 FEASIBILITY
 ACCEPTABILITY

4.  SUITABILITY is concerned with whether a
strategy addresses the circumstances in which
an organisation is operating or not – the
strategic position.
 It requires the board assessment of the extent to
which the new startegy would fit with the
future trends.

5.  Scenarios: Options are matched to different
future scenarios.
 Ranking : Options are assessed against key
factors in the enviroment ,resources and
expectations and a score is established for each
option.