Strategic alliances are termed “strategic” because they solve major strategic challenges where traditional strategies are less effective – all the more reason they are attractive and why they have risen worldwide.
With the globalization of markets and the imperative of technological innovation, companies find themselves needing to marshal new capabilities and doing so quickly. Leveraging partner firms allows companies to focus on their core competencies and access capabilities as needed – from research and development to manufacturing processes, from distribution to marketing and sales.
However, as useful as strategic alliances have become, the reality is that establishing and operating an effective strategic alliance is a challenge to make it work. Strategic alliances have roughly a 50% rate of success.