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    Strategic Alliance: Presented By:-Mohd - Kafeel

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    Mohd Kafeel
    Strategic alliances allow independent organizations to pursue shared goals or meet critical needs while remaining separate. Partners may contribute resources like products, distribution channels, manufacturing, funding, equipment, knowledge or intellectual property. The alliance aims for synergy where benefits are greater than individual efforts. Main types include joint ventures, outsourcing, franchising, R&D licensing, and technology licensing. Stages of alliance formation are strategy development, partner assessment, contract negotiation, alliance operation, and termination when objectives are met or cannot be met.

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    Strategic Alliance: Presented By:-Mohd - Kafeel

    Uploaded by

    Mohd Kafeel
    60 views8 pages
    Strategic alliances allow independent organizations to pursue shared goals or meet critical needs while remaining separate. Partners may contribute resources like products, distribution channels, manufacturing, funding, equipment, knowledge or intellectual property. The alliance aims for synergy where benefits are greater than individual efforts. Main types include joint ventures, outsourcing, franchising, R&D licensing, and technology licensing. Stages of alliance formation are strategy development, partner assessment, contract negotiation, alliance operation, and termination when objectives are met or cannot be met.

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    Strategic Alliances

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    Strategic alliances allow independent organizations to pursue shared goals or meet critical needs while remaining separate. Partners may contribute resources like products, distribution channels, manufacturing, funding, equipment, knowledge or intellectual property. The alliance aims for synergy where benefits are greater than individual efforts. Main types include joint ventures, outsourcing, franchising, R&D licensing, and technology licensing. Stages of alliance formation are strategy development, partner assessment, contract negotiation, alliance operation, and termination when objectives are met or cannot be met.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    60 views8 pages

    Strategic Alliance: Presented By:-Mohd - Kafeel

    Uploaded by

    Mohd Kafeel
    Strategic alliances allow independent organizations to pursue shared goals or meet critical needs while remaining separate. Partners may contribute resources like products, distribution channels, manufacturing, funding, equipment, knowledge or intellectual property. The alliance aims for synergy where benefits are greater than individual efforts. Main types include joint ventures, outsourcing, franchising, R&D licensing, and technology licensing. Stages of alliance formation are strategy development, partner assessment, contract negotiation, alliance operation, and termination when objectives are met or cannot be met.

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    STRATEGIC ALLIANCE

    Presented by:Mohd.Kafeel

    STRATEGIC ALLIANCES
    A Strategic Alliance is a relationship between two or more

    parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.

    TYPES OF STRATEGIC ALLIANCES


    Collaborative agreements between businesses can take a number of forms and are becoming increasingly common as businesses aim to get the upper hand over their competitors. The main types of strategic alliances are listed below:

    Joint Ventures
    A joint venture is an agreement by two or more parties to form a single entity to undertake a certain project. Each of the businesses has an equity stake in the individual business and share revenues, expenses and profits. Joint ventures between small firms are very rare, primarily

    Outsourcing Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces unemployment, and increases

    Franchising Franchising is an excellent way of quickly rolling out a successful concept nationwide. Franchisees pay a set-up fee and agree to ongoing payments so the process is financially risk-free for the company. However, downsides do exist, particularly with the loss of control over how franchisees run their franchise.

    R&D
    Strategic alliances based around R&D tend to fall into the joint venture category, where two or more businesses decide to embark on a research venture through forming a new entity.

    Product Licensing This is similar to technology licensing except that the license provided is only to manufacture and sell a certain product. Usually each licensee will be given an exclusive geographic area to which they can sell to. Its a lower-risk way of expanding the reach of your product compared to building your manufacturing base and distribution reach.

    Technology Licensing This is a contractual arrangement whereby trade marks, intellectual property and trade secrets are licensed to an external firm. Its used mainly as a low cost way to enter foreign markets. The main downside of licensing is the loss of control over the technology as soon as it enters other hands the possibility of exploitation arises.

    STAGES OF ALLIANCE FORMATION


    Strategy Development: Strategy development involves

    studying the alliances feasibility, objectives and rationale, focusing on the major issues and challenges and development of resource strategies for production, technology, and people. It requires aligning alliance objectives with the overall corporate strategy. Partner Assessment: Partner assessment involves analyzing a potential partners strengths and weaknesses, creating strategies for accommodating all partners management styles, preparing appropriate partner selection criteria, understanding a partners motives for joining the alliance and addressing resource capability gaps that may exist for a partner. Contract Negotiation: Contract negotiations involves determining whether all parties have realistic objectives, forming high calibre negotiating teams, defining each partners contributions and rewards as well as protect any proprietary information, addressing termination clauses, penalties for poor

    Alliance Operation: Alliance operations involves

    addressing senior managements commitment, finding the calibre of resources devoted to the alliance, linking of budgets and resources with strategic priorities, measuring and rewarding alliance performance, and assessing the performance and results of the alliance. Alliance Termination: Alliance termination involves winding down the alliance, for instance when its objectives have been met or cannot be met, or when a partner adjusts priorities or reallocates resources elsewhere.

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