Corporate Strategic Alliance Management

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is a formal relationship between two or more parties to pursue a set of
agreed upon goals or to meet a critical business need while remaining independent organizations.
Partners may provide the strategic alliance with resources such as products, distribution
channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or
intellectual property. The alliance is a cooperation or collaboration which aims for a synergy
where each partner hopes that the benefits from the alliance will be greater than those from
individual efforts. The alliance often involves technology transfer (access to knowledge and
hhexpertise), economic specialization [1], shared expenses and shared risk.

Various terms have been used to describe forms of strategic partnering. These include
µinternational coalitions¶ (Porter and Fuller, 1986), µstrategic networks¶ (Jarillo, 1988) and, most
commonly, µstrategic alliances¶. Definitions are equally varied. An alliance may be seen as the
µjoining of forces and resources, for a specified or indefinite period, to achieve a common
objective¶.
There are seven general areas in which profit can be made from building alliances
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A typical strategic alliance formation process involves these steps:
Jp ? : Strategy development involves studying the alliance¶s

feasibility, objectives and rationale, focusing on the major issues and challenges and
development of resource strategies for production, technology, and people. It requires
aligning alliance objectives with the overall corporate strategy.
Jp Ê
: Partner assessment involves analyzing a potential partner¶s
strengths and weaknesses, creating strategies for accommodating all partners¶
management styles, preparing appropriate partner selection criteria, understanding a
partner¶s motives for joining the alliance and addressing resource capability gaps that
may exist for a partner.
Jp c : Contract negotiations involves determining whether all parties
have realistic objectives, forming high caliber negotiating teams, defining each partner¶s
contributions and rewards as well as protect any proprietary information, addressing
termination clauses, penalties for poor performance, and highlighting the degree to which
arbitration procedures are clearly stated and understood.
Jp
: Alliance operations involves addressing senior management¶s
commitment, finding the caliber of resources devoted to the alliance, linking of budgets
and resources with strategic priorities, measuring and rewarding alliance performance,
and assessing the performance and results of the alliance.
Jp
: Alliance termination involves winding down the alliance, for
instance when its objectives have been met or cannot be met, or when a partner adjusts
priorities or re-allocates resources elsewhere.
The advantages of strategic alliance include:
1.p Allowing each partner to concentrate on activities that best match their capabilities.
2.p Learning from partners & developing competences that may be more widely exploited
elsewhere
3.p Adequacy a suitability of the resources & competencies of an organization for it to
survive.
There are four types of strategic alliances: joint venture, equity strategic alliance, non-equity
strategic alliance, and global strategic alliances.
Jp ÿ is a strategic alliance in which two or more firms create a legally
independent company to share some of their resources and capabilities to develop a
competitive advantage.
Jp Y is an alliance in which two or more firms own different

percentages of the company they have formed by combining some of their resources and
capabilities to create a competitive advantage.
Jp is an alliance in which two or more firms develop a
contractual-relationship to share some of their unique resources and capabilities to create
a competitive advantage.
Jp V?
working partnerships between companies (often more than 2)
across national boundaries and increasingly across industries. Sometimes formed between
company and a foreign government, or among companies and governments.
Alliance Defined
A strategic alliance is when two or more businesses join together for a set period of time. The
businesses, usually, are not in direct competition, but have similar products or services that are
directed toward the same target audience.
Alliance means "cooperation between groups that produces better results that can be gained
from a transaction. Because competitive markets keep improving what you can get from
transactions, an alliance must stay ahead of the market by making
continuous advances."1
Strategic alliance is a primary form of cooperative strategies. "A
strategic alliance is a partnership between firms whereby resources, 2 , and core
competences are combined to pursue mutual interests."2
Alliances can be structured in various ways, depending on their purpose. Nonequity strategic
alliances, equity strategic alliances, and joint ventures are the three basic types of strategic
alliances.

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Toshiba¶s approach is to develop strategic alliances with different partners for different technologies
because a single company cannot dominate any technology or business by itself... More
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The Seven Dimensions of Strategic Innovation
The Strategic Innovation framework weaves together seven dimensions to produce a range of outcomes
that drive growth.
Core Technologies and Competencies is the set of internal capabilities, organizational competencies and
assets that could potentially be leveraged to deliver value to customers, including technologies,
intellectual property, brand equity and strategic relationships... More
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TraveLinx Inc. is a leader in tourism ± related internet technology, marketing, e-commerce and database
information management solutions. The core of TraveLinx's competence comes from developing and
implementing its proprietary Destination Management System (DMS) that warehouses and serves
tourism-related rich content such as accommodations, attractions, festivals and events, etc. through the
Internet to a variety of different users. It currently provides the content for Tourism Ontario. TraveLinx
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ICitAmerica's core product is the iCit TeleCenter, a custom hardware, software and targeted services
design developed exclusively for the needs of the hospitality industry. The iCit Telecenter provides
broadband ISP, content applications, advertising, maintenance, service and customer support. Their
technology is designed to cater to every guest in every room irrespective of their level of technical
literacy.
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retail locations where destination marketing and transactions are complimentary to the retailer's products
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Corporate Strategic Alliance Management

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