Int strg allaince
- 2. Benefits of Strategic Alliances Potential Benefits of Strategic Alliances Shared Synergy Ease of Shared Knowledge and Market Risk and Competitive Entry Expertise Advantage
- 3. Types of Alliances Comprehensive Functional – Production – Marketing – Financial – Research and Development
- 4. Comprehensive Alliances Participating firms agree to perform together multiple stages of the process by which goods or services are brought to the market Functional areas are intertwined between firms Organized as joint ventures Achieves greater synergy through sheer size and total resources
- 5. Functional Alliances Involve only a single functional area of the business Integration is less complex Does not typically take the form of a joint venture
- 6. The Scope of Strategic Alliances
- 7. Implementation of Strategic Alliances Selection of partners Compatibility Nature of potential partner’s products or services Relative safeness of the alliance Learning potential of the alliance
- 8. Form of Ownership Corporation Limited partnership Public-private venture
- 9. Joint Management Considerations Shared management agreements Assigned arrangements Delegated arrangements
- 10. Shared Management Agreement Both partners Partner 1 participate actively Partner 2 Alliance
- 11. Assigned Arrangement One partner takes Partner 1 primary responsibility Partner 2 Alliance
- 12. Delegated Arrangement Both partners delegate Partner 1 management to the Partner 2 joint venture’s executives Joint Venture
- 13. Pitfalls of Strategic Alliances Pitfalls of Strategic Alliances Incompatibility Access Distribution Loss Changing of to of of Circum- partners Information Earnings Autonomy stances