2. A strategic alliance is a trade
agreement in which two or
more companies cooperate for
mutual benefit. Companies
can combine their efforts for a
variety of purposes, including
but not limited to, the
exchange of
knowledge, experience, and
costs, as well as to be able to
enter new markets or to
obtain a competitive
advantage in one.
4. ADVANTAGES
Gain competitive
advantage through
access to a resources.
Reduce marketing
and advertising
costs.
Make each entity
appear to be larger
than it is
Expand potential
markets.
Maximize ability to
raise capital.
5. DISADVANTAGES
There may be
conflicts over how
the partnership
works
A member of the The relationship
alliance may "steal" may not be win-
your customers. win.
,
One member of the
alliance may lose its There is the potential to
identity. reduce future
opportunities.
.
6. • The decision to form a strategic alliance
depends on the needs and goals of the
companies involved and on the laws of the
countries in which the companies are doing
business.
• Gaining capabilities
• Easier access to target markets
• Sharing the financial risk
• Achieving and competitive advantage
7. • PENETRATING NEW FOREIGN MARKETS
• SHARING MARKETING COSTS
• POOLING GLOBAL RESOURCES
• LEARNING FROM PARTNERS
8.
9. • achieve advantages of scale, scope and
speed
• develop new business opportunities
through new products and services.
• expand market development.
• increase exports.
• create new business.
• reduce costs.