strategic alliance by sandeep
DESCRIPTION
This ppt is about the strategic alliances.The types of strategic alliances and many examples like Herohonda, MarutiSuzuki and much more.TRANSCRIPT
Strategic Alliance
By : Sandeep Sharma
Apeejay Institute of Technology
Greater noida
AllianceThe alliance is a cooperation or collaboration which aims for a synergy. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization , shared expenses and shared risk.
“The whole is greater than sum of
parts”
Strategic allianceA Strategic Alliance is a
formal 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.
Strategic alliancePartners may provide the
strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property.
Ex : Star Alliance
Partnerships between firms
are combined to pursuemutual interests toare combined to pursuemutual interests to
DevelopDevelop
ManufactureManufacture
DistributeDistribute
GoodsGoods
ServicesServices
Firm AFirm AFirm BFirm B
where theirwhere their
Core CompetenciesCore Competencies
CapabilitiesCapabilitiesResourcesResources
Strategic AlliancesStrategic Alliances
Reasons for Alliances Slow Cycle
Market
Gain access to a restricted market
Establish franchise in a new market
Standard Cycle
Market
Gain market powerGain access to complementary resources
Meet competitive challenge
Pool resources for large projectsLearn new business techniques
Fast Cycle
Market
Fast Cycle
MarketMaintain market leadershipMaintain market leadershipForm an industry technology standardForm an industry technology standard
Share risky R&D expensesShare risky R&D expenses
Increase speed of product, service or market entryIncrease speed of product, service or market entry
Example: Dow Corning from Dow Chemical and Corning Inc.
Example: Chrysler and Mitsubishi Automotive
Example: Chrysler’s supplier network
Types of Strategic AlliancesTypes of Strategic Alliances
Independent firm is created by the joining assets from two other firms where each contributes 50% of the total
Joint Venture
Partnership where the two partners do not own equal shares
Equity Strategic Alliance
Contract is given to supply, produce or distribute a firm’s goods or services (without equity sharing)
Non-Equity Strategic AllianceNon-Equity Strategic Alliance
Types of Strategic AlliancesTypes of Strategic Alliances
working partnerships between companies (often more than two) across national boundaries and increasingly across industries. Sometimes formed between company and a foreign government, or among companies and governments
Global Strategic Alliances
Few Strategic Alliances
HeroHonda
Reliance and SamsungReliance and Aaj Tak
MarutiSuzuki Ltd.
Microsoft and Nokia