Premium Essay

A Overview of Strategic Alliance

In: Business and Management

Submitted By cathy860801
Words 8851
Pages 36
An overview of strategic alliances

Dean Elmuti Lumpkin College of Business and Applied Sciences, Eastern Illinois University, Charleston, Illinois, USA Yunus Kathawala Lumpkin College of Business and Applied Sciences, Eastern Illinois University, Charleston, Illinois, USA

Keywords

Strategic alliances, Competitive advantage, Success

Introduction
Nike, the largest producer of athletic footwear in the world, does not manufacture a single shoe. Gallo, the largest wine company on earth, does not grow a single grape. Boeing, the pre-eminent aircraft manufacturer, makes little more than cockpits and wing bits (Quinn, 1995, p. 1).

Abstract

Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and to learn quickly from the leading firms in a given field. However, strategic alliances are not simple or easy to create, develop, and support. Strategic alliances projects often fail because of tactical errors made by management. By using a well managed strategic alliances agreement, companies can gain in markets that would otherwise be uneconomical. Considerable time and energy must be put forth by all involved in order to create a successful alliance. It is essential that corporations enter into strategic alliances arrangements with a comprehensive plan outlining detailed expectations, requirements, and expected benefits.

``How can this be?'' you ask. These companies, like many other companies these days, have entered into strategic alliances with their suppliers to do much of their actual production and manufacturing for them. A strategic alliance is ``an agreement between firms to do business together in ways that go beyond normal company-tocompany dealings, but fall short of a merger or a full partnership'' (Wheelen and Hungar, 2000, p. 125). These alliances...

Similar Documents

Premium Essay

An Overview of Strategic Alliances

...An overview of strategic alliances Dean Elmuti Lumpkin College of Business and Applied Sciences, Eastern Illinois University, Charleston, Illinois, USA Yunus Kathawala Lumpkin College of Business and Applied Sciences, Eastern Illinois University, Charleston, Illinois, USA Keywords Strategic alliances, Competitive advantage, Success Introduction Nike, the largest producer of athletic footwear in the world, does not manufacture a single shoe. Gallo, the largest wine company on earth, does not grow a single grape. Boeing, the pre-eminent aircraft manufacturer, makes little more than cockpits and wing bits (Quinn, 1995, p. 1). Abstract Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and to learn quickly from the leading firms in a given field. However, strategic alliances are not simple or easy to create, develop, and support. Strategic alliances projects often fail because of tactical errors made by management. By using a well managed strategic alliances agreement, companies can gain in markets that would otherwise be uneconomical. Considerable time and energy must be put forth by all involved in order to create a successful alliance. It is essential that corporations enter into strategic alliances arrangements with a comprehensive plan outlining detailed expectations, requirements, and expected benefits. ``How can this be?'' you ask. These companies,......

Words: 8851 - Pages: 36

Free Essay

Article Summary

...This paper attempts to give an overview of the article Strategic Alliances in Action: Toward a Theory of Evolution. Wohlstetter, Smith, and Malloy theorized that the theory of evolution suggests a foundational model of strategic alliance evolution is warranted from past concepts and research. It was identified that some research gap exists with theories on the evolutionary process of strategic alliances. First, this summary will discuss Wohlstetter, Smith, and Malloy’s review of literature on strategic alliances as a springboard in discussing what themes emerged. Secondly, a discussion of why and how an intentional study was conducted towards determining a foundational model of strategic alliance evolution. Finally, conclusions will be drawn with implications for a strengthened solidarity between social workers and the community in which we serve. Strategic alliances are increasingly becoming popular day by day. Despite the many different reasons of why such alliances occur a central theme have been recognized and noted. Within the corporate sector and public arena the literature review and the study conducted revealed the basic definition of strategic alliance as a problem solving tool that address organizational problems and issues that cannot be solved by itself. This presents an avenue for other organizations to share resources as well as joint decision making towards resolving these problems and issues. It is most commonly utilized amongst “nonprofits, for profit and......

Words: 1203 - Pages: 5

Free Essay

International Business Expansion: Two Markets, One Product

...Table of Contents 1. Executive Summary…………………………………………………………………………………………………5 2. Introduction…………………………………………………………………………………………………………….6 3. Overview of the company and product……………………………………………………………………7 4. Compare & Contrast………………………………………………………………………………………………..8 4.1 Political economy issues…………………………………………………………………………………….8 4.2 Cultural Issues……………………………………………………………………………………………………9 4.3 Entry Strategy…………………………………………………………………………………………………….9 4.4 Strategic Alliance……………………………………………………………………………………………….9 5. Analysis……………………………………………………………………………………………………………………10 6. Conclusion……………………………………………………………………………………………………………….11 7. References……………………………………………………………………………………………………………….12 TITLE: A case of international expansion of two markets and one product. EXECUTIVE SUMMARY Over the years, the nature and dynamics of Guysuco Company’s engagement with the overseas markets have gone through a shift. Overseas expansion and competiveness are increasingly dependent on firm level capabilities rather on its national traditional products. The process of globalization at Guysuco has led to the development of competitive capabilities which has brought about intense partnership and interaction with global corporations. Additionally, the emergence of computer and internet has led to advanced information technology where the world of business has resulted in emergence of new types of businesses and new ways of organizing......

Words: 1881 - Pages: 8

Free Essay

Global Marketing Management

...Global Marketing Management 1 Global Market Entry Strategies 2 Overview          Target Market Selection Choosing the Mode of Entry Exporting Licensing Franchising Contract Manufacturing Joint Ventures Wholly Owned Subsidiaries Strategic Alliances 3 1. Target Market Selection   A crucial step in developing a global expansion strategy is the selection of potential target markets. A four-step procedure for the initial screening process: 1. Select indicators and collect data 2. Determine importance of country indicators 3. Rate the countries in the pool on each indicator 4. Compute overall score for each country 4 Choosing the Mode of Entry Sample Decision Criteria: Mode of Entry  Market Size and Growth  Risk  Regulatory Environment  Competitive Environment  Local Infrastructure  Tax Breaks… 5 2. Choosing the Mode of Entry (contd.) • Emerging Countries (Vietnam, the Philippines) • Growth Countries (China, India) • Maturing and established Countries (South Korea, Taiwan, Japan) Company Objectives Need for Control Internal Resources, Assets and Capabilities Flexibility     6 2. Choosing the Mode of Entry (contd.)  Mode of Entry Choice: A Transaction Cost Explanation  Transaction Cost Analysis (TCA)  Transaction-Specific Assets 7 3. Exporting    Indirect Exporting Cooperative Exporting  Piggyback Exporting Direct Exporting 8 4. Licensing    Licensor and the......

Words: 712 - Pages: 3

Premium Essay

Entrepreneurship

...MGT 106 (Credit hours 3) International Business BBA, Third Year, Sixth Semester Course Objective The course aims to help the students in understanding the basics of international business and its environment, and develop the analytical skills required to compete effectively in this environment. 1. Overview of Global Business 4 hours Meaning of international business and globalization, drivers of globalization, overview of changing global picture: declining trade barriers and change in communication, information and transportation technologies. 2. International Trade Theories 7 hours Adam Smith’s Theory of Absolute Advantage, David Ricardo’s theory of comparative advantage, Heckscher-Ohlin’s theory of factor endowment, Raymond Vernon’s product life-cycle theory, new trade theory based on economies of scale, theory of national competitive advantage: Porter’s diamond. 3. Global Business Environment 10 hours Political, Economic and Legal Environment Political systems: individualism vs. collectivism; democratic vs. totalitarian, legal system: property rights, protection of intellectual property, product safety requirements, economic environment: market economy, command economy & mixed economy, interconnection of political, legal and economic system followed by a country, impact of differences in system on international business. Cultural Environment Meaning of culture, values and norms, determinants of culture: social......

Words: 420 - Pages: 2

Premium Essay

Executive Summary

...com Retail Application Services This document was prepared by: eStrategyPartners.com "Business Solutions for eCommerce" The "Digital Coast's" leading ebusiness consulting firm, established on the belief that there is a critical need for objective and creative analyses of the strategic possibilities of eCommerce and Internet technology. eStrategy Partners provides both the strategic expertise of traditional management consulting firms and the technical planning capability and accountability of Internet professional service firms. "eStrategy" -- the identification, design and implementation of business solutions for eCommerce. Pipedream.com 04/03/00 Proprietary and Confidential Pipedream.com – Retail Application Services Executive Summary Opportunity Competition between online etailers for customers is at an all time high. However, most etailers mirror traditional brick-and-motor business models: open a store, drive traffic to it, and hope for sales, while failing to take advantage of the Web’s ability to create networks of consumers through online communities, content, and partnerships. The Concept Pipedream.com has created a new weapon in the retailer’s arsenal of strategic partnerships turning single consumers into networks of consumers. Recognizing this market need, Pipedream.com has developed a service that will greatly improve how Internet retailers entertain and service its customers. Integrating services and content will enable retailers to tap......

Words: 1527 - Pages: 7

Premium Essay

Hongkong Disneyland

...Contents 1. Introduction 3 2. External Analysis 3 2.1 PEST 3 2.2 PEST Analysis Overview 6 3. Internal Analysis 7 3.1 SWOT Analysis 7 3.2 Implications of Assessment 9 4. Industrial Analysis 10 4.1 Perceptual Map of Disneyland Hong Kong & its competitors 10 4.2 Porter’s 5 Forces 11 4.3 Porter’s 5 Forces Overview 14 5. Objectives 15 6. Strategy 15 6.1 Ansoff Growth Matrix 16 6.2 Position 17 6.3 Reposition 18 6.3.1 Sun Tzu Art of War Strategy 19 6.3.2 Attack Overview 23 Contents 7. Proposed Activities & Budget 24 8. References 28 Executive Summary Based on the case study ‘Export of American Fantasy World to the Chinese’, the authors critically analyzed the internal and external environment of Disneyland Hong Kong. Outlining the key strategic issues that the company has to deal with and providing recommendations of what Disneyland Hong Kong could do in order to once again achieve competitive advantage. 1. Introduction Disneyland Hong Kong having opened for over 10 years is still facing major problems until today. Over the years Disneyland Hong Kong constantly dealt with issues regarding social responsibility, negative publicity and competition with Ocean Park. Despite its current situation, Disneyland......

Words: 5971 - Pages: 24

Free Essay

Samsung

...Samsung Overview II. Introduction to the Global Strategy Group (GSG) III. GSG & You IV. Korea & Seoul I. Samsung Overview I. Samsung Overview (Revenue & Global Presence) Fast growth and vast global footprint Samsung Group Revenue ※ Billion US Dollars Global Operations 318   369,000 employees worldwide 510 offices and facilities in 79 countries 141 87 226 Electronics 80 Samsung 22 1997 2005 2012 4 I. Samsung Overview (Leading Products) 5 I. Samsung Overview (Leading Products) 6 I. Samsung Overview (Brand Value) Samsung ranked 9th among global companies in 2012 7 I. Samsung Overview (Total 29 Affiliates Companies) The Samsung Group consists of many different business units Electronics Industry Electronics Engineering & Heavy Industry C&T Corporation Engineering Financial Services Life Insurance Fire & Marine Insurance Samsung Card Securities Asset Management Venture Investment Chemical Cheil Industries Inc. Petrochemical Fine Chemicals BP Chemicals Total Other Companies Cheil Worldwide Everland Inc. The Shilla Hotels & Resorts Economics Research Institute S1 Corporation Medical Center BioLogics SDS Heavy Industries Electro-Mechanics Techwin SDI Display Corning Precision Glass Bioeps 7 Affiliates 3 Affiliates 6 Affiliates 5 Affiliates 8 Affiliates 8 I. Samsung Overview (SEC Biz. Division) HME : Health Medical Equipments 9 I. Samsung Overview (SEC......

Words: 5322 - Pages: 22

Premium Essay

Term Paper on Business Strategy of a Mnc Pharma in Bangladesh

...queries and feedback regarding this report. Yours truly, Mohammad Nakibur Rahman Roll: 55, Batch: 43D Wazedur Rahman Roll: 143, Batch: 46D i Table of Contents Executive Summary ....................................................................... iii 1. Introduction ............................................................................. 1 1.1 1.2 Objective ................................................................................................................................. 1 Scope ....................................................................................................................................... 1 1.3 Company Overview ....................................................................................................................... 1 1.4 Industry Overview ................................................................................................................... 2 2. Methodology...

Words: 3508 - Pages: 15

Premium Essay

Milito

... Kale and Singh 45 A R T I C L E Managing Strategic Alliances: What Do We Know Now, and Where Do We Go From Here? by Prashant Kale and Harbir Singh Executive Overview Alliances present a paradox for firms. On the one hand, firms engage in a large number of alliances to secure and extend their competitive advantage and growth; on the other hand, their alliances exhibit surprisingly low success rates. In this paper, we discuss how firms can address these failures by identifying some of the primary drivers of alliance success. First, we discuss how firms can achieve success with any individual alliance by considering critical factors at each phase of the alliance life cycle. Second, we show how firms can increase their overall alliance success by developing and institutionalizing firm-level capabilities to manage alliances. Third, we highlight emerging issues in the alliance context, including the need to recognize a new class of alliances between firms and not-for-profit organizations or individuals, the benefits of taking a “portfolio approach” to alliance strategy and management, and the opportunity to transfer one’s alliance capabilities to the effective management of other interfirm relationships, including acquisitions. I The Alliance Paradox n the last two decades, alliances have become a central part of most companies’ competitive and growth strategies. Alliances help firms strengthen their competitive position by enhancing market......

Words: 11145 - Pages: 45

Premium Essay

Course

...1 SCHULICH SCHOOL OF BUSINESS YORK UNIVERSITY SGMT 6000 3.0 STRATEGIC MANAGEMENT Wednesday 2:30-5:30 pm (A) - Room N108 Tuesday 08:30-11:30 pm (B) - Room W136 Fall Term, 2011 Professor: Moshe Farjoun Email: mfarjoun@schulich.yorku.ca Room: N311 SSB Office Hours: By appointment Secretary: JoAnne Stein Office: N305B SSB Telephone: 416-736-5087 Brief Description This course examines business and corporate strategy. The focus is on strategic management, the process of choosing and defining purposes and objectives, formulating and implementing a viable strategy and monitoring strategic performance. It deals with the organization in its totality and demonstrates how and why the various functions of business are interdependent and need to be coordinated if the organization is to perform effectively. The course elaborates on the applicability of the strategic management discipline to a variety of sizes and types of organizations. Prerequisites Students are required to complete all 5000-series Required Foundations of Management Core Courses before enrolling in this course. Extended Description and Objectives One of the classic definitions of strategy is as follows: “A strategy is the pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole. Well-formulated strategies help marshal and allocate an organization’s resources into a unique and viable posture based upon its relative internal competencies and shortcomings,......

Words: 3246 - Pages: 13

Premium Essay

Strategic Plan

...Strategic Plan Overview: American Management Association Jennifer Socorro Strategy Formulation and Implementation – MGT 578 Sharon Palmitier – Facilitator July 2, 2007 Overview The following strategic plan overview will focus on the American Management Association (AMA), where I am employed as an eMarketing Strategist. AMA “is a world leader in professional development and performance-based learning solutions” (AMA, About AMA, 2007). The bulk of our business is focused on corporate training via public seminars. As a member-based not-for-profit organization, we are devoted to helping the business community by ensuring that businesspeople are equipped with the skills necessary to thrive in today’s challenging and dynamic business environment. We offer over 170 seminars which can be attended at locations throughout the United States or delivered on-site at any organization. As was mentioned above, our customers are businesspeople interested in career development and organizations interested in developing their human resources in order to gain a competitive advantage and help them prosper within their industry. A company’s mission statement “answers the question “What business are we in?” (Pearce & Robinson, 2005, p. 37). Pearce and Robinson describe the following components as those to be included within an effective mission statement: customer market, product service, geographic domain, technology, concern for survival, philosophy, self-concept, and concern......

Words: 5436 - Pages: 22

Premium Essay

Axis

...Brochure More information from http://www.researchandmarkets.com/reports/2146452/ Axis Bank Limited (formerly UTI Bank, Ltd.) - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report Description: Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Project Description: Axis Bank Limited (formerly UTI Bank, Ltd.) Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Axis Bank Limited (formerly UTI Bank, Ltd.) since January 2007. Scope: – Provides intelligence on Axis Bank Limited (formerly UTI Bank, Ltd.)'s M&A, strategic partnerships and alliances, capital raising and private equity transactions. – Detailed reports of various financial transactions undertaken by Axis Bank Limited (formerly UTI Bank, Ltd.) and its subsidiaries since 2007. – Information about key financial and legal advisors for Axis Bank Limited (formerly UTI Bank, Ltd.)'s financial deals transactions. – Financial deals tables and charts covering deal value and volumes trend, deal types and geography-based deal activity. Highlights: This report includes Axis Bank Limited (formerly UTI Bank,......

Words: 1045 - Pages: 5

Premium Essay

P5 Unit 36 - Business Studies

...Business plan [pic] HDR Gaming Laneroad Ashford Kent TN23 5BT 012333252 07826425 hemlimbu@live.co.uk www.hdr.co.uk Contents Page 1. Summary 3 2. Business overview 4 Introduction Current position Competitive advantage Growth plan 3. Business strategy 5 Tactics Strategic issues Core values 4. Marketing 6 SWOT and critical success factors Market research Distribution channels Strategic alliances E-commerce and technology Tactical promotion plan Marketing budget Credibility and risk reduction 5. Team and management structure 7 Skills, experience, training and retention Advisors Management systems 6. Financial budgets and forecasts 8 Profit and loss forecast Cash flow forecast Balance sheet forecast Capital expenditure budget Break-even analysis 1. Summary • HRD Gaming • We are a gaming business • We will be producing games which gives a unique experience to the gamers • We are a partnership business ran by 3 people – More money remaining to invest on other stuff 2. Business overview Introduction (HDR) Our business involves, 3 people, Hem Limbu, Dipesh Magar & Roshan Rai. Together we make the name HDR. We are a games developer. Our aim is to build accessories for different consoles and enhance their gaming performance. We started this business because we found out......

Words: 2647 - Pages: 11

Premium Essay

Mkt/571 Week 1

...“change or die” (Kotler & Keller, 2006, p. 4). Focusing on things like a 15% cost reduction target and hedging fuel prices have led to a 20% reduction in loyalty program membership, a 10% decrease in share prices, and a looming situation with union obligations (University of Phoenix, 2008, pp. 1-2, 4, 8). Marketing Concepts To improve the outlook for Classic Airlines the marketing team knows that they will have to use some basic marketing concepts to put themselves back on the map. They plan on using their existing CRM system as a means to gather data on existing customers, conducting a thorough analysis of their current competition, and using their “fundamentally solid and robust system that's globally accessible” to form new strategic alliances (University of Phoenix, 2008, pp. 5-6, 9). According to Kotler and Keller (2006), one way that marketing has changed in modern days is that brand loyalty is no longer a significant factor as consumers can access a plethora of data prior to making any financial decision. This both empowers consumers and increases the level of competition, as consumers can seek the service that caters to their individual needs (p. 14). Kevin, the CMO...

Words: 740 - Pages: 3