Strategic Alliances – An Analysis

Strategic Alliances - An Analysis

Introduction

A company should develop new capabilities to grow in future. If a business wants to function successfully in a different market than the one in which it operates, it has to make changes in its strategy tools and organizational design. It has to produce more efficiently than before. The business owner can try to come up with an in-house solution. But, she must have adequate infrastructure and time to support it. Moreover, if an entrepreneur wants to focus on the core competencies of her company, she may not want to steer time and resources away from them. For this reason the company must enter into an alliance with another organization. In this article, we will study about strategic alliance and its criteria.

Idea

In strategic alliance abilities of two or more companies are brought together. All parties are benefitted from this alliance. This trading of products, technologies and skills helps both companies to grow. In such alliances all involved organizations solve each other’s problems and stay independent at the same time. Strategic alliances are useful and less risky than creating in-house solutions. Joint ventures and merger & acquisitions are useful options.

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