Strategic Alliance

1948 WordsOct 31, 20088 Pages
Strategic Alliance In today’s ever changing environments strategic alliances have emerged as a driving force behind the success of many business ventures. Strategic alliances allow companies to expand their reach without having to maximise their risk or commit themselves beyond their core business. Throughout this paper I will be examining the driving forces behind strategic alliances looking predominately at the motivations behind the formation of a strategic alliance and the idea of a multi company alliance. Following this I will be analysing the key elements that make for a successful strategic alliance and how a successful alliances are measured. After which I will be establishing the risk that are pronounced when entering into such…show more content…
The increase need to compete and stay ahead of competition my also facilitate the idea of a multi company alliance. Whereas numerous organisation join together under the same objective to enhance their product or service. For example Qantas airlines recognises that it cannot travel to every corner of the global so it like many other airlines has entered into an alliance that brings together ten of the world 's biggest and best airlines, all committed to providing world-class service and value. This alliance not only strengthens the companies but sees the risks of entering into new markets spread across the board. Companies often enter into alliances to gain more market share not only in their market but within affiliated markets. This is often an endeavour or tactic used by organisations that are at the top of their market and are looking to expanded or take second curve action into to related markets, in order to stay highly competitive. An example of this is Nortel and Microsoft whom in July 2006 entered into a strategic alliance based on a shared vision for unified communications. This seeing both companies create potential new business opportunities, put pressure on their competitors as they reduce prices and gain access to a larger market share. What makes for successful strategic alliances? Reasons that can be attributed to the success of
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