Download - Strategic Alliance
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STRATEGIC ALLIANCES
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STRATEGIC ALLIANCES
Strategic alliances are cooperative agreements between two or more companies to work together and share resources to achieve a common business objective.
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WHY STRATEGIC ALLIANCE..?
• Sharing Resources like products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property.
• To create Synergy – to gain competitive advantage
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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.
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OTHER TYPES
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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.
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DISADVANTAGES
• Technology – Low Cost Manufacturing.– US & Japanese Companies
• Organization Culture.• Competition – How to Compete in future.
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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
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PROCESS OF STRATEGIC ALLIANCE
Setting alliance strategy
Selecting a partner
Structuring the alliance
Managing the alliance
Re-evaluating the alliance
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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.
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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.
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Thank You…