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
Types on the basis of
agreement

Technology- Production- Distribution- Resource-

based based based based
alliance. alliance. alliance . alliance.
Models……….

Alliance Alliance
conceptualization. pursuance.

Alliance Alliance
confirmation implementation
Preocess………..
Revised condition Initial condition
* Task definition * Task definition
* Partner’s routine * Partner’s routine
* Interface * Interface
structure structure
* Expectation of * Expectation of
motives motives

Learning about
Re-evaluation of- *environment
*efficiency * Task
*equity * Process
*adoptability *skills
*goods
Stages……….

Alliance
Alliance termination.
operation.
Contract
negotiation.

Partner assessment

Strategic
development.
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.