In order to remain competitive in business world, it is important for a company to choose right business strategy. One of the growing trends for business today is the increasing number of strategic alliances since alliance is now considered as a great driver of business growth. According to Peter Drucker, “Alliances are where the real growth is.” He made the argument that supports the use of alliances rather than merger and acquisition. Since the alliance is not costly and truly helps business to grow. I agree with Peter Drucker that a strategic alliance is good way to achieve real growth, especially in a global market, however, mergers and acquisitions could also be considered in certain situations to create growth for business as well. There are three main topics I use to analyze whether to agree or disagree with his statement which are about competitive advantages, uncertainty of global market and types of resources.
Firstly, alliances provide sustainable competitive advantage. In order to grow in global market, companies might have to face a lot of pressures from their existing competitors in terms of price, quality, and service. It is impossible for business to be good at everything. Alliance is a good business tool that helps firms to meet its objectives by combining resources with the partners and gain access to certain sets of resources, while at the same time; it gives flexibility to adapt quickly and allows switching partners. Alliance enables business to access
As a result of global competition and the constantly growing demand for new technologies, strategic alliances are becoming more crucial as its objective is to support the competitiveness of the activities concerned. This is achieved through the pooling of each other’s core competencies and specialization.
Vital partnership is an attestation between no less than two relationship to team up in a specific business activity, so that each preferred standpoint from the characteristics of the other, and builds high ground. The improvement of key unions has been seen as a response to globalization and growing unsteadiness and diverse quality in the business environment. Key unions incorporate the sharing of data and ability amongst assistants and likewise the reduction of danger and costs in reaches, for instance, relationship with suppliers and the headway of new things and developments. A key association together is here and there contrasted and a joint meander, yet intrigue may incorporate contenders, and generally has a shorter future. Essential association is an immovably related thought. This article separates significance of key union, its points of interest, sorts, system of course of action, and gives two or three cases examinations of key associations together. This paper tries to join the degree and piece of publicizing limits in the confirmation of sufficiency of key organizations. A couple of proposals from an advancing viewpoint concerning the examination of association together process are point by point. On the preface of the suggestions, a framework is made for future
Strategic alliance is an agreement between two or more organizations to cooperate in a detailed business activity, so that each get benefited from the strengths of one an other, and gains competitive advantage. The formation of strategic alliances has been seen as a comeback to globalization and increasing doubt and difficulty in the business environment. Strategic alliances occupy the sharing of knowledge and expertise between partners as well as the reduction of risk and costs in areas such as relationships with suppliers and the development of new products and technologies. strategic alliance is sometimes equated with a joint venture, but an alliance may involve competitors, and generally has a shorter life span. Strategic partnership is a closely related concept. This article analyzes definition of strategic alliance, its benefits, types, process of formation, and provides a few cases studies of strategic alliances. This paper tries to synthesize the scope and role of marketing functions in the determination of effectiveness of strategic alliances. Several propositions from a marketing perspective about the analysis of alliance process are formulated. On the basis of the propositions, a framework is developed for future research
For example, Aeon alliance with a lot of different categories company such as McDonald, Samsung Malaysia, Starbuck Coffee Company, Al-Ikhsan Sport Company and more. For example, Aeon lure the customer by reward them McDonald voucher or KFC coupons when costumer purchase to certain amount, with this vouchers it can let your customers consume at your partner company. In this situation, we can call a win-win situation where both parties (company and alliance company) gains from the customer. Hence, by this mode of operation, it can achieved better business result and helps the company
The alliance system is a union or association formed for mutual benefits, especially between countries or organizations. A reason i think that the alliance is the main reason would be all the different alliances that started
For instance if a hospital want their patient to complete blood work before coming in for their appointments, partnering with a lab company will make it more convenient for the hospital and create new business for the lab company. There are two types of partnerships to include “strategic alliances that are defined as partnership arrangements that do not involve ownership and mergers and acquisitions that are ownership-based arrangements” (Yarbrough & Powers, 2006, p. 52). This allows the health care organization to achieve high quality patient care to many patients rather than to only those patients with illnesses that one hospital can provide. Partnerships allow hospitals to build relationships with other hospitals or health care organizations to provide an all-inclusive course of treatment to all patients. The end result is that the hospital can serve more patients and increase access to more patients. If you were to take a healthcare system, for instance, where numerous individual hospitals will form partnerships in order to make the resources of each hospital available to all of the patients. “Health care organizations hope to increase access to capital, gain access to management expertise and other knowledge, and benefit from expanded human resource programs through partnership strategies” (Yarbrough & Powers, 2006, p. 51). For many healthcare
An alliance is an association formed for mutual benefits, in this case, between countries. After the death of Franz Ferdinand, the alliances that were formed were
partnership because many nations are aware of how alliances and coalitions become important to achieve their security interest. Therefore, this open world is advantageous to combatant commanders in forming alliance and coalition based on their common interest.
Union Pacific has alliances with three other railway companies: Ferrocarril Mexicano, Transportacion Ferroviaria Mexicana and the Canadian Pacific Railway. As stated on the Union Pacific website, these alliances with three other North American railroads are key to “providing seamless service beyond Union Pacific’s traditional 23-state reach.” These partners include all of the major railroads in North America, which leads to allowing customers’ affordability and easy access in their markets.
The meaning of alliances is a relationship based on the same interests in nature, or qualities that are the same with that person or country . In the 1914 there were two big alliances the triple entente and the triple alliance.The country that were in the triple ente were Britain,
A firm can have either or both horizontal or vertical complementary strategic alliances. A horizontal complementary strategic alliance firms share some of their resources at the same stage of development (Hitt et al., 2015, p. 273). Well a vertical complementary strategic alliances allows for firms to share some of their resources from different stages of development (Hitt et al., 2015, p.271). The sharing of resources can also inspire partnering firms to adapt and use innovative thinking in order to adapt to environmental changes (Hitt et al., 2015, p.271). An example of this is the partnership between Disney, News Corp., and Comcast, which came together to form Hulu to distribute video content (Hitt et al., 2015, p.273). This partnership allows the firms to stream their content through Hulu
Aegis Analytical was a start-up, manufacturing process software provider, developing solutions for the pharmaceutical industry. The company was founded on managerial know-how, established by two co-founders with in-depth knowledge of the manufacturing domain and software know-how, developed their flagship product called Discoverant. Discoverant was a revolutionary product that offered a solution to highly complex problems in the manufacturing process of pharmaceutical companies. The software had the following features: it collected data during the production process, tracked failures and then analyzed the data to give sophisticated bases for solutions to managers. Aegis aspired to be the recognized leader in the process
Matching Collective and Competitive Strategies Author(s): Rudi K. F. Bresser Source: Strategic Management Journal, Vol. 9, No. 4 (Jul. - Aug., 1988), pp. 375-385 Published by: John Wiley & Sons Stable URL: http://www.jstor.org/stable/2486272 Accessed: 03/05/2010 19:55
What is Alliance? It is the conditions where
Simple strategic alliance is an agreement between those companies to pursue a set of agreed objectives while remaining independent. They provide such ressources like: products, project funding etc but don´t own eachothers shares. Posco owned 1% from NSL AND NSL 3% from Posco