The document discusses strategic alliances between companies. It defines strategic alliances as a cooperative strategy where firms combine resources and capabilities to create a competitive advantage. Strategic alliances have become integral to modern organizations' success as complexity and dynamism have increased. The main reasons for strategic alliances are to share risks and limit the resources a company must commit. Smaller companies and start-ups often rely on strategic alliances to advance beyond the development stage since they may not have the capabilities or resources to do so alone. The document provides several examples of strategic alliances between large companies.

1. BY
G.SURAJ
ROLL NO:52

2.  REQUIREMENT OF ASSET AND
CAPABILITIES
 MINIMIZE COST
 ENTER INTO A NEW MARKET
 MINIMIZE FINANCIAL RISK

3.  GLOBALIZATION
 UNCERTANITY OF INTERNATIONAL
MARKETS
 FINANCIAL RESOURCES AND
TECHNOLOGICAL CHANGES

4.  HELPS IS GETTING INSTANT MARKET ACCESS
 HELPS TO EXPLOIT NEW OPPURTUNITIES
 INCREASE THE SALES
 PROVIDES NEW SKILLS AND TECHNOLOGIES
 DEVELOP NEW PRODUCT AT A PROFIT
 INCREASES THE DISTRIBUTION CHANNEL
 BROADENING BUSINESS AND POLITICAL
CONTACTS.
 GREATER KNOWLEDGE OF INTERNATIONAL
CUSTOMS AND CULTURES.
 ENHANCES THE COMPANIES IMAGE IN THE
WORLD MARKET

5.  WEAKER MANAGEMENT INVOLVEMENT
 LESS EFFICIENT COMMUNICATION
 POOR RESOURCE ALLOCATION
 LEGAL AND FINANCIAL IMPLICATIONS
 LOSS OF CONTROL ON PRODUCT CONTROL ,
OPERATING COST , EMPLOYEE RELATIONSHIP.
 DIFFICULTY TO COMPLETE OBJECTIVES ON
TIME.
 MARKET INSULATION DUE TO LOCAL
PARTNERS PRESENCE.

10.  VODAFONE AND TELEKOM MALAYSIA(2006)
 CHRYSLER AND FIAT: ALLIANCE TO BUILD
COMPACT AND SUB-COMPACT JEEPS
 MICROSOFT AND NOKIA:
 SOFTWARE PARTNERSHIP TO BUILD NOKIA’S
WINDOW PHONE

11.  WIPRO AND GE: TO DISTRIBUTE GE’S HEALTHCARE
PRODUCTS AND SOLUTIONS IN INDIA
 GSK AND DR.REDDY LABS: THE INDIAN COMPANY WILL
MANUFACTURE PRODUCTS UNDER GSK BRAND NAME
FOR SALE IN OVERSEAS MARKET.
 AIRTEL , ERICSON , NOKIA AND IBM(2004): MULTIMILLION
DOLLAR DEAL TO OUTSCORCE AIRTEL’S NETWORK,IT &
CALL CENTRE FUNCTIONALITIES.
 KOTAK MAHINDRA AND SCOTIA BANK(2012):
FINANCIAL SERVICES TO INDIANS IMMIGRATING TO
CANADA AND FROM CANADA.

12.  MAHINDRA AND RENAULT(2007): RENAULT PROVIDED
KEY COMPONENTS AND PARTS AND MAHINDRA
PROVIDED A DISTRIBUTION CHANNEL FOR THE SALE
OF RENAULT CARS.
 ICICI AND VODAFONE(2012): VODAFONE’S M-PESA
OFFERED ITS USERS A MOBILE MONEY ACCOUNT
WITH ICICI.

13. Strategic alliance is form of cooperative strategy in which firms
Combine their resources and capabilities to create competitive
advantage. With increasing complexity and dynamism strategic
alliances has become integral component of the success story of
Modern organizations. Generally we found three forms of strategic
forms: joint ventures, equity strategic alliance and non-equity
strategic alliance. One of the main reasons to engage in an alliance is
to share risk and limit the resources a company must commit to the
venture in question. Many organizations do not have a clear vision of
their long term direction. They are propelled by short-term or
operational needs. Such companies are prone to enter into alliances
simply because a potential partner approaches them with a proposal.
Corporate and alliance strategy is indispensable for smaller
companies. In fact, it may not be possible for a small or start-up
organization in any industry to go beyond its development stage
without strategic alliances.

14. THANK
YOU…