![]() ![]() Partnerships facilitate access to global markets.Speed to market is vital, and strategic alliances considerably improve it.Adequate suitability of the resources & competencies of an organization for it to survive.Gaining knowledge from partners & developing competences which may be more widely exploited elsewhere.Making it possible for each partner to concentrate on activities which best match their capabilities.Read Also: Advantages of Strategic Alliances On top of that, it can offer an alternative source of capital during challenging economic times. A correctly structured strategic alliance can bring numerous opportunities and improve the parties’ growth potential. Having said that, organizations must ensure that the objectives of the alliance are compatible and in tune with their existing businesses so their expertise is transferable to the alliance. In this age of rapid technological changes and global markets forming alliances is usually the quickest, most effective technique for attaining growth objectives. Strategic Alliances are also employed to speed up product introduction and overcome legal and trade barriers expeditiously. ![]() Alliances also benefit organizations by lowering manufacturing costs, and developing and diffusing new technologies quickly. Joining up with others provides complementary resources and capabilities, making it possible for businesses to grow and expand more speedily and efficiently. The main advantages of Strategic Alliances between companies are :Ī strategic alliance allows a business to get competitive advantage through access to a partner’s resources, including markets, technologies, capital and people. What are the Advantages and Disadvantages of Strategic Alliance ? The result is a maze of intertwined companies, which may be competing with each other in numerous product areas while working together in some. These companies may in turn be associated with other businesses in separate alliances. On the contrary, they could be extremely complex, involving a number of organizations, positioned in different nations around the world. Strategic alliances could be as simple as two companies sharing their technological and/or marketing resources. ![]() In a business it is a relationship between two or more companies which enables each to accomplish specific strategic objectives neither would be able to achieve on their own. ![]()
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