Essay about Strategic Alliance

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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…
Following this came a new era of alliances one which aimed at consolidating a company or companies position. These alliances where built to be leaders of not only their sector but associated sectors and finally came the development of the geographic alliance this saw the break down of boarders and the increased importance of core competencies and anticipating one’s rivals with the need to stay innovative and competitive. Driving forces of a strategic alliance The driving forces behind the creation of strategic alliances vary from company to company. Each organisation enters into an agreement with a specific purpose or objective in mind. Although the main reasons behind the formation of a strategic alliance can be accommodated to the following; To gain access to companies resources, such as new technology etc. To accelerate opportunities into new markets, include global reach To reduce financial strain To gain a more fierce competitive advantage. Forming an alliance to expanded business entity can be accounted for as one of the top reasons behind the entrances into a strategic alliance according to the Coopers and Lybrands study on strategic alliances. The intensity of new competition and a growing need to obtain more market share may force a business to expand globally, Thus the appeal of a strategic alliance. Partnering with an offshore
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