Submitted to Submitted by Mr. Dheeraj Tiwari Anjali Kumawat Aarti Chhanjwani MBA-FT 2nd sem

Strategic

Alliance

Synopsis

Introduction Strategic alliance in international market Role and emergence Need of strategic alliance Types of strategic alliance Models Stages of strategic alliance Advantages example

Introduction

“A strategic alliance is a relationship between two or more parties to pursu a set of agreed goal or to meet a critical business need while remaining independent.”

Strategic alliance in international market

“A global strategic alliance is an agreement among two or more independent firm to co-operate for the purpose of achieving common goal such as a competitive advantage or customer value creation.”

Role………………. Globalization of the world economy.

Systematic technological change.

Innovation led growth.

Growing acceptance of the view that competition does not necessarily ensure optimum growth.

Need………… Adding value to product.

Improving market access.

Strengthening operations.

Adding technological strength.

Enhancing strategic growth.

Building finance strength.

Types

joint venture. Equity strategic alliance.

Non-Equity strategic alliance.

Global strategic alliance

Types on the basis of agreement

Technology-based

alliance.

Production-based

alliance.

Distribution-based

alliance .

Resource-based

alliance.

Models……….

Alliance conceptualization. Alliance pursuance.

Alliance confirmation Alliance implementation

Preocess………..

Revised condition

* Task definition

* Partner’s routine

* Interface structure

* Expectation of motives

Learning about

*environment

* Task

* Process

*skills

*goods

Re-evaluation of-

*efficiency

*equity

*adoptability

Initial condition

* Task definition

* Partner’s routine

* Interface structure

* Expectation of motives

Stages……….

Strategic development.

Partner assessment

Contract negotiation.

Alliance operation.

Alliance termination.

Advantages Improve organization efficiency.

Offer to access new market and technologies.

Reduce the impact of risk.

Help to build independent brands.

Deals to heavy budget project.

Example………..

Cisco system and polycom Inc. have strategic alliance for joint development.

Nokia and Microsoft enter strategic alliance on Windows Phone, Bing, Xbox Live and more

Thank You.