Strategic alliance (1)
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The document discusses strategic alliances between companies. It defines a strategic alliance as when two or more independent organizations join together to pursue mutually agreed upon objectives. Companies form strategic alliances for reasons such as product development, market expansion, and improving existing product lines. Both companies benefit from bringing together their complementary resources, expertise, and skills. Strategic alliances allow partners to increase manufacturing capacity, access new markets, and develop innovative solutions beyond what either could achieve alone. The document provides examples of different types of strategic alliances across various industries.
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Strategic intent is an aspirational plan which is helpful to achieve the vision of the organization.
It inspires winning: winning of customers, winning against competitors, winning over the broader market.
It focuses on firm’s taking initiatives to change the strategy of the firm that will lead to competitive advantage.
Whatever the case, strategic intent turns strategy from a “fit” exercise to a “stretch” exercise.
Example: An intent retailer does not think about how to match a competitor’s operation, but to create even a better operation.
The specific features of strategic intent can be easily explained with the help of hierarchy or pyramid of the organization from the top-bottom.
Example: “Toyota motors” use quality circle (QC) and Just In Time (JIT) to get competitive advantage.
Example: When “Honda” entered the motorcycle market competitors thought there was no threat as it did not imitate Harley Davidson or Yamaha. But it chose to start with products that were internationally different. Then by carving out new, white space it developed a customer base & strong brand image.
The strategic intent of Reliance is to being a global leader of the lowest cost producer of polyester products by focusing on vertical integration & operational effectiveness.
strategic pyramid or hierarchy of strategy can be broadly categorized in the following manner.
Corporate level
Business level
Functional level
Corporate level strategy is a comprehensive plan which is developed by the top management for the company as a whole whether the firm is a small one product or large multinational corporation. on a continuous basis.
In a large multinational company corporate strategy is also about managing various product lines & business units for value maximization.
For example: corporate headquarters must play the role of “organizational parent” in that it must deal with various product & business unit as “children”. Even though each product line or business unit has its own competitors & it has to obtain its own competitive advantage in the market. The cooperation among different units as a whole succeed the “family”.
The Corporation’s directional Strategy is composed of three general orientations towards growth such as: Growth strategy expands the company’s activities.
Stability strategies make no change to company’s current activities.
Retrenchment strategies reduce the company’s level of activities
The growth strategy can be achieved by Integration. Integration can be horizontal & vertical.
Horizontal Integration is the degree to which a firm operates in multiple geographic locations at a time and increases the range of product & services offering to the current customers.
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LECT-6 Strategic intent
Strategic intent is an aspirational plan which is helpful to achieve the vision of the organization.
It inspires winning: winning of customers, winning against competitors, winning over the broader market.
It focuses on firm’s taking initiatives to change the strategy of the firm that will lead to competitive advantage.
Whatever the case, strategic intent turns strategy from a “fit” exercise to a “stretch” exercise.
Example: An intent retailer does not think about how to match a competitor’s operation, but to create even a better operation.
The specific features of strategic intent can be easily explained with the help of hierarchy or pyramid of the organization from the top-bottom.
Example: “Toyota motors” use quality circle (QC) and Just In Time (JIT) to get competitive advantage.
Example: When “Honda” entered the motorcycle market competitors thought there was no threat as it did not imitate Harley Davidson or Yamaha. But it chose to start with products that were internationally different. Then by carving out new, white space it developed a customer base & strong brand image.
The strategic intent of Reliance is to being a global leader of the lowest cost producer of polyester products by focusing on vertical integration & operational effectiveness.
strategic pyramid or hierarchy of strategy can be broadly categorized in the following manner.
Corporate level
Business level
Functional level
Corporate level strategy is a comprehensive plan which is developed by the top management for the company as a whole whether the firm is a small one product or large multinational corporation. on a continuous basis.
In a large multinational company corporate strategy is also about managing various product lines & business units for value maximization.
For example: corporate headquarters must play the role of “organizational parent” in that it must deal with various product & business unit as “children”. Even though each product line or business unit has its own competitors & it has to obtain its own competitive advantage in the market. The cooperation among different units as a whole succeed the “family”.
Corporation’s directional Strategy is composed of three general orientations towards growth such as: Growth strategy expands the company’s activities.
Stability strategies make no change to company’s current activities.
Retrenchment strategies reduce the company’s level of activities.
Growth strategy is widely pursued by the corporations or industries those are designed to achieve growth in sales, profit & assets.
It can be achieved by both concentration & diversification.
Concentration within one product line or industry & diversification into other product line & industries.
It can use investing for new product or new market development internally or through mergers, acquisitions or strategic alliances.
Concentration strategies are very sensible as they try to compete successfully only within single industry.
Examples: McDonald’s, Starbucks
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How is strategic planning carried out at different level of marketing?
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Similar to Strategic alliance (1)
LECT-6 Strategic intent.pptx
Strategic intent is an aspirational plan which is helpful to achieve the vision of the organization.
It inspires winning: winning of customers, winning against competitors, winning over the broader market.
It focuses on firm’s taking initiatives to change the strategy of the firm that will lead to competitive advantage.
Whatever the case, strategic intent turns strategy from a “fit” exercise to a “stretch” exercise.
Example: An intent retailer does not think about how to match a competitor’s operation, but to create even a better operation.
The specific features of strategic intent can be easily explained with the help of hierarchy or pyramid of the organization from the top-bottom.
Example: “Toyota motors” use quality circle (QC) and Just In Time (JIT) to get competitive advantage.
Example: When “Honda” entered the motorcycle market competitors thought there was no threat as it did not imitate Harley Davidson or Yamaha. But it chose to start with products that were internationally different. Then by carving out new, white space it developed a customer base & strong brand image.
The strategic intent of Reliance is to being a global leader of the lowest cost producer of polyester products by focusing on vertical integration & operational effectiveness.
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Corporate level
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Corporate level strategy is a comprehensive plan which is developed by the top management for the company as a whole whether the firm is a small one product or large multinational corporation. on a continuous basis.
In a large multinational company corporate strategy is also about managing various product lines & business units for value maximization.
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The Corporation’s directional Strategy is composed of three general orientations towards growth such as: Growth strategy expands the company’s activities.
Stability strategies make no change to company’s current activities.
Retrenchment strategies reduce the company’s level of activities
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Horizontal Integration is the degree to which a firm operates in multiple geographic locations at a time and increases the range of product & services offering to the current customers.
SBU: The corporations are responsible for creating value through their business. They do so by managing their portfolio of business, ensuring that the businesses are successful over long-term by developing Business Units & focusing on the compatibility of those.
LECT-6 Strategic intent
Strategic intent is an aspirational plan which is helpful to achieve the vision of the organization.
It inspires winning: winning of customers, winning against competitors, winning over the broader market.
It focuses on firm’s taking initiatives to change the strategy of the firm that will lead to competitive advantage.
Whatever the case, strategic intent turns strategy from a “fit” exercise to a “stretch” exercise.
Example: An intent retailer does not think about how to match a competitor’s operation, but to create even a better operation.
The specific features of strategic intent can be easily explained with the help of hierarchy or pyramid of the organization from the top-bottom.
Example: “Toyota motors” use quality circle (QC) and Just In Time (JIT) to get competitive advantage.
Example: When “Honda” entered the motorcycle market competitors thought there was no threat as it did not imitate Harley Davidson or Yamaha. But it chose to start with products that were internationally different. Then by carving out new, white space it developed a customer base & strong brand image.
The strategic intent of Reliance is to being a global leader of the lowest cost producer of polyester products by focusing on vertical integration & operational effectiveness.
strategic pyramid or hierarchy of strategy can be broadly categorized in the following manner.
Corporate level
Business level
Functional level
Corporate level strategy is a comprehensive plan which is developed by the top management for the company as a whole whether the firm is a small one product or large multinational corporation. on a continuous basis.
In a large multinational company corporate strategy is also about managing various product lines & business units for value maximization.
For example: corporate headquarters must play the role of “organizational parent” in that it must deal with various product & business unit as “children”. Even though each product line or business unit has its own competitors & it has to obtain its own competitive advantage in the market. The cooperation among different units as a whole succeed the “family”.
Corporation’s directional Strategy is composed of three general orientations towards growth such as: Growth strategy expands the company’s activities.
Stability strategies make no change to company’s current activities.
Retrenchment strategies reduce the company’s level of activities.
Growth strategy is widely pursued by the corporations or industries those are designed to achieve growth in sales, profit & assets.
It can be achieved by both concentration & diversification.
Concentration within one product line or industry & diversification into other product line & industries.
It can use investing for new product or new market development internally or through mergers, acquisitions or strategic alliances.
Concentration strategies are very sensible as they try to compete successfully only within single industry.
Examples: McDonald’s, Starbucks
Presentation Spa Working
Strategic Pharma Alliance is an innovative start-up that aims to form a powerful alliance of 100 marketing companies with a 100 crore enterprise by 2025. It offers end-to-end pharmaceutical services through strategic partnerships and alliances to provide the best quality, excellent services, and speed in a cost-effective manner. Strategic alliances allow companies to access new markets, technologies, and complement skills in a fast and efficient way to create sustainable value for customers.
Joint venture
Joint ventures involve two or more parties collaborating to achieve common goals and solve problems. They allow parties to leverage each other's resources in a mutually beneficial relationship. Many large, fast-growing companies are using joint ventures successfully. They provide advantages like spreading costs, accessing new markets and technologies, increasing speed to market, and gaining strategic advantages over competitors through synergies. Both internal and external factors should be considered when strategizing and establishing a joint venture.
Strategic Alliances
There are several types of strategic alliances that companies can form, including joint ventures, equity alliances, and non-equity alliances. Successful strategic alliances require factors like trust between partners, senior management support, clear goals, compatibility between partners, and a long-term commitment to achieving mutual benefits. Potential pitfalls include a lack of commitment, poor planning, diverging strategies between partners, inflexibility, and unrealistic expectations.
Partnering for success
The document discusses partnerships, defining them as collaborative agreements where parties work together towards a common goal and share risks, responsibilities, and benefits. It outlines reasons for partnering like gaining new resources, capabilities, and access to markets. Success depends on complementary strengths and clear goals/expectations. Risks include low commitment, diverging strategies, and lack of trust. When considering partnerships, companies should evaluate if they can benefit from new resources and fill gaps. Due diligence includes understanding a potential partner's finances, operations, market presence, and customer service values.
Sample answeres mba sem4 fall 2012
The document discusses strategy formulation in business management. It defines strategy as a systematic plan to achieve future objectives. The key stages in strategy formulation are extensive research and analysis, determining strategic goals and plans, and implementing plans through strategic management. There are three levels of strategy: corporate, business, and operational. The summary effectively captures the main points about defining strategy and outlining the strategy formulation process in 3 sentences.
Blue Sky Organic Ventures Strategic Alliances
BlueSky Organic Ventures was founded in 2009 to provide business development, advisory, and strategic alliance services to companies in the natural, organic, and gluten-free lifestyle sectors. The company looks to partner with firms that offer unique products or brands and help them develop sustainable revenue channels in emerging markets through strategic partnerships. BlueSky was founded by Mark Vitcov who has over 17 years of experience in finance and private equity and has raised over $125 million for companies. One of BlueSky's core services is helping companies form strategic alliances to leverage growth, reduce costs and risks, and increase competitiveness and brand equity.
Hardip Andodariya_GSM_SEM IV_F1.pptx
This document discusses strategic alliances between companies Uber and Spotify. It provides background on their partnership which allows Uber riders to stream Spotify playlists during rides. This benefits both companies by making the Uber experience more personalized and encouraging Spotify subscriptions. The document then discusses reasons for forming strategic alliances including achieving competitive advantages, pooling resources, risk minimization, and market expansion. It provides tips for selecting strategic partners such as aligning goals, building trust, and supplying complementary resources. Finally, it outlines steps for evaluating and selecting a strategic partner including defining markets, setting criteria, identifying candidates, conducting due diligence, and ensuring compatibility and synergistic goals.
The Power Of Strategic Partnerships
Strategic partnerships can accelerate company growth by providing access to resources beyond a company's means. A strategic partnership formally agrees for companies to pursue common goals by not investing internally in certain capacities. It benefits both partners, providing one with new technology and the other with market access. Key benefits include faster time to market, reduced risk, and potential for future acquisition. However, partnerships require protecting intellectual property, limiting exclusivity, ensuring proper branding, and establishing performance standards to avoid pitfalls. When structured correctly, strategic partnerships powerfully leverage technology for profitable growth.
Senior Seminar in Business Administration BUS 499Coope.docx
Senior Seminar in Business Administration
BUS 499
Cooperative Strategy
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009). BUS499: Strategic management: Competitiveness and globalization, concepts and cases: 2009 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
Welcome to Senior Seminar in Business Administration.
In this lesson we will discuss Cooperative Strategy.
Please go to the next slide.
ObjectivesUpon completion of this lesson, you will be able to:Identify various levels and types of strategy in a firm
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm.
Please go to the next slide.
Supporting TopicsStrategic alliancesCooperative strategiesCompetitive risks
In order to achieve this objective, the following supporting topics will be covered:
Strategic alliances;
Cooperative strategies; and
Competitive risks.
Please go to the next slide.
Strategic AlliancesCooperative strategyStrategic allianceCombination of resources and capabilitiesExchange and sharing of resourcesFirms leverage existing resourcesCornerstone of many firms’ competitive strategy
Recognized as a viable engine of firm growth, cooperative strategy is a strategy in which firms work together to achieve a shared objective. Thus, cooperating with other firms is another strategy firms use to create value for a customer that exceeds the cost of providing that value and to establish a favorable position relative to competition.
A strategic alliance is a cooperative strategy in which firms combine some of their resources and capabilities to create a competitive advantage. Thus, strategic alliances involve firms with some degree of exchange and sharing of resources and capabilities to co-develop, sell, and service goods or services. Strategic alliances allow firms to leverage their existing resources and capabilities while working with partners to develop additional resources and capabilities as the foundation for new competitive advantages. To be certain, the reality today is that strategic alliances have become a cornerstone of many firms’ competitive strategy.
Please go to the next slide.
Strategic Alliances, continuedJoint ventureEquity strategic allianceNonequity strategic alliance
The three major types of strategic alliances include joint venture, equity strategic alliance, and nonequity strategic alliance.
A 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. Joint ventures, which are often formed to improve firms’ abilities to compete in uncertain competitive environments, are effective in establishing long-term relationships and in transferring tacit knowledge. Because it can’t be codified, tacit, or implied, knowledge is learned through experiences such as those taking place when people from partner firms work together in a join.
3 The competitive advantage of strategic alliances.pdf
This document discusses strategic alliances and their competitive advantages. It provides examples of alliances in different industries. Strategic alliances allow companies to access new markets, technologies, and skills. They provide competitive advantages such as entering new markets, confronting competition, overcoming trade barriers, and dividing risks. However, alliances also have disadvantages such as costs, blocking other opportunities, and exposing companies' technologies.
3 The competitive advantage of strategic alliances.pdf
This document discusses strategic alliances and their competitive advantages. It provides examples of alliances in different industries. Strategic alliances allow companies to access new markets, technologies, and skills. They provide competitive advantages such as entering new markets, confronting competition, overcoming trade barriers, and dividing risks. However, alliances also have disadvantages such as costs, blocking other opportunities, and exposing companies' technologies.
Finding the ideal partner Kwicien, Jack . Employee Benefi
Finding the ideal partner
Kwicien, Jack . Employee Benefit Adviser ; New York Vol. 10, Iss. 2, (Feb 2012): 44.
ProQuest document link
ABSTRACT
For example, if your business currently offers group benefits and you see that your firm is currently passing up a
huge opportunity by not offering voluntary benefits, perhaps partnering with a firm that specializes in these
product lines would make sense. The alliance partner presumably has: domain expertise; carrier relationships;
technological capabilities; and sales channel partners, for example. And the alliance partner candidate in turn may
be looking to affiliate with a larger firm that has: benefits plan design expertise; access to different carrier
relationships; and a large number of group benefits clients who are undoubtedly making plan changes that create
benefits gaps which could be satisfied by voluntary benefits offerings. Clearly these two businesses would be
synergistic, and could greatly benefit from each other's expertise and relationships. That would also be true of
businesses such as a property and casualty broker, a retirement planning firm, a human resource consulting
practice, or even a small payroll company.
Don't be afraid to "think outside the box" when it comes to considering potential alliance candidates. Today's
competitor or administrator or vendor may be tomorrow's ideal strategic partner depending upon what you are
trying to accomplish. Think broadly and strategically about what will benefit your clients and customers most in
the future. Don't focus on the way you conduct business today. Think about how you want to be conducting
business two or five years from now and the roadmap that will get you there.
As we talk with benefits advisers all over the country, the forward thinking, select few are looking at their existing
customer base, capabilities, and their own business models and are contemplating methods to adapt their
practices. They are evaluating their client value proposition in light of today's market realities and emphasizing the
expertise and capabilities that they possess and that will be relevant today and several years from now. I think
there is real value to this kind of self-examination. If you do not think your firm can be objective in evaluating its
capabilities, contact us and we will assist you. An ideal alliance partner candidate would possess some or all of the
following characteristics:
FULL TEXT
Many of us are growing tired of the colder weather just as we grow weary of the grind of health care reform
updates and downdrafts. And all of us are ready for the economy to improve in a meaningful and sustained
manner. In some respects it is our winter of discontent. Not to mix literary references, but it is the best of times
and it is the worst of times. Which will it be for you? That depends on whether your glass is half empty or half full.
And it depends on whether you have a plan to succeed.
Last ...
Strategic alliance
Strategic alliances allow businesses to gain competitive advantages through accessing a partner's resources like markets, technologies, capital and personnel. The document defines strategic alliances as partnerships between two or more businesses that join together for a set period of time to pursue mutual interests while retaining independence. It discusses the characteristics, stages of formation, types, advantages and disadvantages, risks, success factors and provides an example of Apple's strategic alliance with Clearwell. In conclusion, strategic alliances can be a cost-effective growth strategy if managed properly to help companies develop and exploit their unique strengths through team efforts.
Estrategic alliace
The document discusses various types of strategic alliances between companies. It defines strategic alliances as cooperative relationships between two or more companies that decide to share resources for a mutually beneficial project while maintaining their independence. The document outlines factors that promote strategic alliances such as finding new market entries and expanding into new markets. It also discusses the advantages of strategic alliances, including gaining new skills/technology and increasing sales, and potential disadvantages like loss of control. Examples of strategic alliances provided include partnerships between an oil company and research lab or a clothing retailer and manufacturer.
growth-vs-scaling-how-to-achieve-it
This will go into the minute details of growth and scaling, examining its unique features, advantages, and considerations.
Successful start-ups that grow and scale quickly are known as “unicorns” or “billion-dollar companies” .
CORPORATE OBJECTIVES AND STRATEGY
Corporate objectives are the goals that the whole organisation is trying to achieve. The corporate a...
EXTERNAL GROWTH STRATEGIES
EXTERNAL GROWTH STRATEGIES
How to Boost Your Business.
How to Attract More Customers.
How to Collect More Revenue.
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3 The competitive advantage of strategic alliances.pdf
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Strategic alliance (1)
- 1. STRATEGIC ALLIANCE Design Horse Design Horse Design Horse "Partnering is the quickest, most effective way to re- engineer a business." Curtis E. Sahakian
- 2. Introduction Mergers and acquisitions are a critical part of business strategies for organizations big or small. In the corporate world, these alliances or business tie-ups are of huge consequences. As per its definition, a strategic alliance is when two or more parties join hands to pursue mutually agreed-upon objectives all while remaining independent organizations. Design Horse
- 3. Design Horse A company may enter into a strategic alliance for a variety of causes. These could be in the areas of design, product development or improving the existing product line, expansion into a new market, etc. Typically, two or more companies form a strategic alliance when each of them holds more than one business asset or has the expertise or skills that will help in enhancing the business operation.
- 4. How can firms benefit from a Strategic Alliance Strategic alliances are flexible and burden-free. The firms don't have to necessarily merge capitals and can exist independently. ·A strategic alliance brings resources and expertise that both parties have to offer. This could be marketing and sales competence, deeper understanding of an existing product line, consumer base expansion, etc. Many times, a strategic alliance gives access to new foreign markets with solutions and findings that wouldn't have been possible for either party on ·their own. For example, MNCs partnering with trusted local brands to gain access in an emerging market. ·The strategic alliance allows partners to increase their manufacturing and product distribution capacity to quickly meet the demands. ·Alliances have the potential to revolutionize the whole market scenario in a dramatic yet creative way. The right alliance will allow the partners to surpass the competition with new innovative solutions that could be a completely new deal for customers. http://www.parkarbuzz.com/international-strategic-alliances/
- 5. Strategic Alliance has varying scope and breadth A product-based commercial company forms a strategic alliance with a digital marketing agency to improve its marketing efforts or to increase customer interaction. A book store might partner with a coffee shop where people can read the latest books and take a coffee break all at one place, therefore, expanding the customer base for both the partners. A clothing retail business can form a strategic alliance with a garment manufacturer to ensure consistency in quality and sizing. A druggist and chemist manufacturer can form a strategic alliance with a research laboratory to develop more feasible and tradable medications or antidotes. Some examples where we see Strategic Alliance of different dimensions, masses, and ranges: Some examples where we see Strategic Alliance of different dimensions, masses, and ranges: