An strategic alliance is an arrangement between two or more companies to share resources for a specific, mutually beneficial project. It can help companies expand into new markets, develop advantages over competitors, or more effectively process. Strategic alliances go through stages of assessment, contract negotiation, alliance operation, and potentially termination. They benefit companies by providing new skills, technology, products, distribution channels and knowledge. However, they also carry risks like loss of control, weaker management involvement, poor resource allocation and less efficient communication over time.

1. ESTRATEGIC
ALLIANCE

2. What is strategic
alliance?
An arrangement
between two companies
that have decided to
share resources to
undertake a
specific, mutually
beneficial project.

3. expand
into a new
market
a company develop an
develop a advantage
Strategic alliance
more over a
help
effective competitor
process
among other possibilities.

4. Stages of alliances formation
terminat
ion
Alliance
operatio
Contract n
Partner Negotiat Alliance
Strategy
Assess ion
Develop
ment
ment

5. WHY THE STRATEGIC
ALLAINCES?
Control Maximizarc
Unify in corporate
management and
administration
• answer market
demands
Family Wealth
Reorganize
retrenchment
To
reduce
fiscal
costs

6. the advantage
1. Get instant market access, or at least speed your entry
into a new market.
2. Exploit new opportunities to strengthen your position in
a market where you already have a foothold.
3. Increase sales.
4. Gain new skills and technology.
5. Develop new products at a profit.
6. Share fixed costs and resources.
7. Enlarge your distribution channels.
8. Broaden your business and political contact base.
9. Gain greater knowledge of international customs and
culture.
10. Enhance your image in the world marketplac

7. Fear of market insulation due
to local partner's presence
Loss of control over such
Weaker management
important issues as product
involvement or less equity
quality, operating
stake.
costs, employees, etc
Disadvantages
Difficult to keep objectives
Poor resource allocation
on target over time.
Less efficient communication

8. Benefits
Can capitalize on the strengths of each Participating single
organization.
Can Provide links to local contacts and local communities /
stakeholders who may be critical to the success of the program
you want to launch or implement.
Involves Shared Responsibility for the development and
execution of a special program or service.
Limits to Participating organization's liability to the scope of
project Involved.
Reduced-cost Provides Opportunities and expertise for each
Participating Organization.

9. There are four types of strategic alliances.
Joint venture is a strategic alliance in which two or more firms create a legally
independent company to share some of their resources and capabilities to develop a
competitive advantage.
Equity strategic alliance is an alliance in which two or more firms own different
percentages of the company they have formed by combining some of their
resources and capabilities to create a competitive advantage.
Non-equity strategic alliance is an alliance in which two or more firms develop a
contractual-relationship to share some of their unique resources and capabilities to
create a competitive advantage.
Global Strategic Alliances working partnerships between companies (often more
than two) across national boundaries and increasingly across
industries, sometimes formed between company and a foreign government, or
among companies and governments.

10. http://www.youtube.co
m/watch?v=bbzsXb5Z3
6c

11. REFERENCES
 http://www.slideshare.net/jant/alianzas-estrategicas
 http://importexport.about.com/od/MarketingAndSellingGlobally/a/Glo
bal-Strategic-Alliances-Advantages-And-Disadvantages-To-Global-
Strategic-Alliances.htm
 http://en.wikipedia.org/wiki/Strategic_alliance
 http://www.investopedia.com/terms/s/strategicalliance.asp#ixzz26xnd
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