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.
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:
