Use of Strategic Alliances
The following strategic alliances are generally used by companies to:
Increase access to new technologies
Make improvements to competitors’ positions Enter new markets
Reducing product cycle times
Improve research and development efforts
Successful Alliance Planning
Before a corporation makes a strategic alliance with a partner, internally the corporation must make some preparations. This is done so that the alliance is run successfully.
An in-depth thought about the structure and details of how the alliance will be managed need to consider the following in the alliance planning process. The corporation first defines the expected outcomes through strategic alliance relations, as well as determining what elements can be provided by each party and the benefits to be gained.
Corporations also need to first protect various intellectual property rights through a number of legal agreements and agreements to prevent adverse knowledge transfer processes.
The corporation must also determine from the outset what services or products will be run. For the successful operation of services or products, corporations need to assess the extent to which there is a compatibility of corporate culture in order to create a good level of trust.
After several studies have been carried out, the actual process of forming a strategic alliance is through the following stages:
At this stage a study will be carried out on the appropriateness of alliances, objectives and rationalization, the selection of focus on the main and challenging issues, the development of resource strategies to support production, technology, and human resources. At this stage the target is adjusted to the overall strategy of the company / corporation.
At this stage an analysis of the potential of partners will be involved, both strengths and weaknesses, the creation of strategies to accommodate all partner management styles.
It also can prepare partner selection criteria, understand partner motivation in building alliances and clarify resource capability gaps that may be released by partners.
This stage includes determining whether all parties have realistic goals, forming a negotiating team, defining the contribution of each party and recognition of the protection of important information, articles related to termination, penalty / penalty for poor performance, and clear and capable procedures understood in interaction.
Operationalization of the Alliance
Operationalization of the alliance includes affirming the commitment of senior management of each party, determining the resources used for the alliance, linking and adjusting the budget and resources with strategic priorities, affirming the performance and results of alliance activities.
Termination of Alliance
The alliance can be terminated with certain agreed terms. Generally when targets are not achieved, or when partners make strategic priority changes, or reallocate resources to different places.
Strategic Alliance Type
Strategic alliances have several types, the following explanation:
A joint venture is one type of strategic alliance in which there are two or more companies that create companies independently and legally.
Then the company can share resources and expertise to be combined to be able to increase the ability to compete well.
Equity Strategic Alliance
Equity strategic alliance is a type of strategic alliance in which there are two or more companies that have different parts of ownership from companies that are formed together.
But it is able to combine all the resources and expertise or skills to be able to increase quality business competition.
Nonequity Strategic Alliance
Nonequity strategic alliance is one type of strategic alliance in which there are two or more companies that have a relationship to an agreement to use some of the resources.
As well as expertise or skills that are unique but do not share related capital to develop competitive advantage.
Global Strategic Alliances
Global strategic alliances is one type of strategic alliance in which there is a partnership in partnership between two or more companies.
Where the company does not occur between countries but between countries and industries.