4. HELPS IS GETTING INSTANT MARKET ACCESS
HELPS TO EXPLOIT NEW OPPURTUNITIES
INCREASE THE SALES
PROVIDES NEW SKILLS AND TECHNOLOGIES
DEVELOP NEW PRODUCT AT A PROFIT
INCREASES THE DISTRIBUTION CHANNEL
BROADENING BUSINESS AND POLITICAL
CONTACTS.
GREATER KNOWLEDGE OF INTERNATIONAL
CUSTOMS AND CULTURES.
ENHANCES THE COMPANIES IMAGE IN THE
WORLD MARKET
5. WEAKER MANAGEMENT INVOLVEMENT
LESS EFFICIENT COMMUNICATION
POOR RESOURCE ALLOCATION
LEGAL AND FINANCIAL IMPLICATIONS
LOSS OF CONTROL ON PRODUCT CONTROL ,
OPERATING COST , EMPLOYEE RELATIONSHIP.
DIFFICULTY TO COMPLETE OBJECTIVES ON
TIME.
MARKET INSULATION DUE TO LOCAL
PARTNERS PRESENCE.
6.
7.
8.
9.
10. VODAFONE AND TELEKOM MALAYSIA(2006)
CHRYSLER AND FIAT: ALLIANCE TO BUILD
COMPACT AND SUB-COMPACT JEEPS
MICROSOFT AND NOKIA:
SOFTWARE PARTNERSHIP TO BUILD NOKIA’S
WINDOW PHONE
11. WIPRO AND GE: TO DISTRIBUTE GE’S HEALTHCARE
PRODUCTS AND SOLUTIONS IN INDIA
GSK AND DR.REDDY LABS: THE INDIAN COMPANY WILL
MANUFACTURE PRODUCTS UNDER GSK BRAND NAME
FOR SALE IN OVERSEAS MARKET.
AIRTEL , ERICSON , NOKIA AND IBM(2004): MULTIMILLION
DOLLAR DEAL TO OUTSCORCE AIRTEL’S NETWORK,IT &
CALL CENTRE FUNCTIONALITIES.
KOTAK MAHINDRA AND SCOTIA BANK(2012):
FINANCIAL SERVICES TO INDIANS IMMIGRATING TO
CANADA AND FROM CANADA.
12. MAHINDRA AND RENAULT(2007): RENAULT PROVIDED
KEY COMPONENTS AND PARTS AND MAHINDRA
PROVIDED A DISTRIBUTION CHANNEL FOR THE SALE
OF RENAULT CARS.
ICICI AND VODAFONE(2012): VODAFONE’S M-PESA
OFFERED ITS USERS A MOBILE MONEY ACCOUNT
WITH ICICI.
13. Strategic alliance is form of cooperative strategy in which firms
Combine their resources and capabilities to create competitive
advantage. With increasing complexity and dynamism strategic
alliances has become integral component of the success story of
Modern organizations. Generally we found three forms of strategic
forms: joint ventures, equity strategic alliance and non-equity
strategic alliance. One of the main reasons to engage in an alliance is
to share risk and limit the resources a company must commit to the
venture in question. Many organizations do not have a clear vision of
their long term direction. They are propelled by short-term or
operational needs. Such companies are prone to enter into alliances
simply because a potential partner approaches them with a proposal.
Corporate and alliance strategy is indispensable for smaller
companies. In fact, it may not be possible for a small or start-up
organization in any industry to go beyond its development stage
without strategic alliances.