2. Strategic Alliance
Is a voluntary, formal arrangement
between two or more parties to
pool resources to achieve a
common set of objectives that
meet critical needs while
remaining independent entities.
Strategic alliances involve exchange,
sharing, or co development of products,
services, procedures, and processes.
3. Stages of Alliance Formation
Strategy Development: involves studying the
alliance’s feasibility, objectives and rationale,
focusing on the major issues and challenges
and development of resource strategies.
Partner Assessment: involves analyzing a
potential partner’s strengths and weaknesses,
creating strategies for accommodating all
partners’ management styles.
4. Stages of Alliance Formation
Contract Negotiation: involves
determining whether all parties have
realistic objectives, defining each
partner’s contributions and rewards.
Alliance Operation: involves addressing
senior management’s commitment, finding
the caliber of resources devoted to the
alliance, linking of budgets and resources
with strategic priorities.
Alliance Termination: involves winding
down the alliance, for instance when its
objectives have been met or cannot be
met.
5. Types of strategic alliances
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.
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.
Global Strategic Alliances working partnerships
between companies across national boundaries
and sometimes formed between company and a
foreign government, or among companies and
governments.
6. Advantages Disadvantages
Allowing each partner to Significant differences between the
concentrate on activities that best objectives
match their capabilities.
Learning from partners & Irreconcilable differences in business
developing competences that may culture and management styles.
be more widely exploited
elsewhere.
Opportunistic behavior by any
Adequate suitability of the participant.
resources & competencies of an
organization for it to survive.
Loss of control over such important
share risk between the companies. issues as product quality, operating costs,
employees, etc.
7. Starbucks
Starbucks partnered with Barnes and
Nobles bookstores in 1993 to provide in-
house coffee shops, benefiting both
retailers.
In 1996, Starbucks partnered with 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.
8. Apple
Apple partnered 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" .
9. Hewlett Packard
and Disney
Hewlett-Packard and Disney have a long-standing alliance. Disney wanted to
develop a virtual attraction called Mission: SPACE, Disney Imaginers and HP
engineers relied on HP's IT architecture, servers and workstations to create
Disney's most technologically advanced attraction.
10. Webgraphy
Strategic Alliances Help for Cooperative Strategies, Management,
Homework Help - Transtutors.com. (n.d.). Online Tutoring, Homework Help,
Assignment Help – Transtutors.com. Retrieved March 18, 2013, from
http://www.transtutors.com/homework-help/strategic-
management/cooperative-strategies/strategic-alliances/
Strategic Alliance Advantage and Disadvantage. (n.d.). Internet Business
Lawyer - Internet Law and Internet Attorney. Retrieved March 18, 2013,
from http://www.socalinternetlawyer.com/strategic-alliance-advantage-
disadvantage/
Media, D. (n.d.). Examples of Successful Strategic Alliances |
Chron.com. Small Business - Chron.com. Retrieved March 18, 2013, from
http://smallbusiness.chron.com/examples-successful-strategic-alliances-
13859.html
