This document discusses strategic alliances, which are agreements between two companies to undertake mutually beneficial projects while maintaining independence. Strategic alliances are less complex than joint ventures. Examples provided are the Spotify-Uber alliance to let Uber riders control music playback, and the Apple Pay partnership with Mastercard when Apple entered the digital payments business. Strategic alliances can be functional alliances that integrate basic functions through pooling efforts, with common types being production, marketing, financial, and R&D alliances.
This document discusses strategic alliances, which are agreements between two companies to undertake mutually beneficial projects while maintaining independence. Strategic alliances are less complex than joint ventures. Examples provided are the Spotify-Uber alliance to let Uber riders control music playback, and the Apple Pay partnership with Mastercard when Apple entered the digital payments business. Strategic alliances can be functional alliances that integrate basic functions through pooling efforts, with common types being production, marketing, financial, and R&D alliances.
This document discusses strategic alliances, which are agreements between two companies to undertake mutually beneficial projects while maintaining independence. Strategic alliances are less complex than joint ventures. Examples provided are the Spotify-Uber alliance to let Uber riders control music playback, and the Apple Pay partnership with Mastercard when Apple entered the digital payments business. Strategic alliances can be functional alliances that integrate basic functions through pooling efforts, with common types being production, marketing, financial, and R&D alliances.
K.Ambica 562030912 BBA final year WHAT IS A STRATEGIC ALLIANCE?
A strategic alliance is an arrangement between two
companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity. Example: Strategic Partnerships between Spotify and Uber: The alliance between Spotify and Uber is an example of a strategic alliances between two companies. These two companies, through this alliance, increasing their customer base as they offer uber riders to take control of the stereo. Apple Pay and Master Card: When Apple Inc. decided to get into digital payment business. It became a big competitor to all existing companies in this field. TYPES OF STRATEGIC ALLIANCE • FUNCTIONAL ALLIANCE
A functional alliance integrates certain basis functions
between the two parties by pooling efforts to attain specific objectives. The four common types of functional alliances are production alliances , marketing alliances , financial alliances , and R&D alliances . Production Analysis: Production Analysis provides a visual representation of production output and allows you to quantify production losses and the cost associated with them. Marketing analysis: A market analysis is a thorough assessment of a market within a specific industry. Firms share marteing services and expertise. Financial alliance: In the following we use the term ‘financial alliance’ to stand for an alliance between one or several banks and one or several insurance companies. R&D alliance: R&D alliances are innovation-based relationships formed by two or more partners who pool their resources and coordinate their activities to reach a common goal. THANK YOU