Strategic alliances are an attractive approach to doing business in many industries. With the globalization of markets, continuous technological improvements, new business models, and intense global competition, companies find themselves needing to marshal new capabilities throughout the world and doing so quickly.
Leveraging partner firms allows companies to focus on their core competencies and access a wide range of capabilities across the globe – from R&D to manufacturing processes, from distribution to marketing and sales – and get there fast.
Strategic alliances are termed “strategic” because they solve major challenges where traditional strategies are less effective – all the more reasons strategic alliances are attractive and why they have risen worldwide. However, the track record of successful alliances is about 50%. Furthermore, the management challenge can be a tall order and a distraction away from the core business of the firm.
Deciding whether a strategic alliance is right for your company depends on many factors. Managers ask: Are there winning forms of strategic alliance? How do companies use them? What is the underlying rationale of a strategic alliance? How do we execute one? Answers to these questions can put things in perspective and provide valuable practical knowledge.
What You Will Learn