ipl-logo

Strategic Alliance Research Paper

2509 Words11 Pages

1.0 Introduction:
Strategic alliance being one of the successful modes of entry for the organisations to enter into the new market, Small and Medium Enterprise (SMEs) still having difficulty in adopting this as their entry mode due to many factors. Strategic alliance being defined differently by researches, the research perspective define strategic alliance as a long-term cooperative arrangement at the strategic level between two or more firms to improve their competitive position and performance by sharing resources and risks (Inkpen and Tsang 2007). Das and Tang (2000a) divide strategic alliances into four major categories: equity joint ventures, minority equality alliances, bilateral contract-based alliances, and unilateral contract-based …show more content…

The definition of SME varies across countries in terms of industry, ownership structure, annual revenue and number of employees. The European Commission (2003) defines SMEs as enterprises that employ fewer than 250 persons with an annual turnover not exceeding 50 million euro. Singh et al., 2010 find that SMEs have a flat organizational structure and operate under the greater constraints of scarce resources than larger firms.
2.1 Key Factors:
This study identifies broadly four areas of research focus: 1. The motivation for forming alliances (Ghemawat, et al.1986; Park et. Al 2002; Dickson and Weaver 2011), 2. The selection of alliance partners (Osborn and Baughn 1990; Gulati 1995; Hitt et al. 2000; Chung et. Al 2000), 3. The alliance governance structures (Gulati 1998; Hagedoorn, et al., 2003; Das and Teng 2001; Hagedoorn and Narula 1996), and 4. The performance, namely success or failure, of alliances (Teece 1986; Pisano 1990; Madhok and Tallman 1998; Zaheer et al., 1998.) There are limited research conducted on strategic alliances this study tend to examine strategic alliances from a transaction cost persperctive ( e.g. Williamson, 1985), or a resource based perspective (e.g., Das and Teng, 2000a), or a social capital perspective (Chung et al., 2000; Kokka and Prescott, …show more content…

There are lot of models available to study the effectiveness of strategic alliances. Some of the popular frameworks identified by the theorists are discussed here. Symbiotic marketing, edifies the synergistic benefits firms may gain by collaboratively exploiting growth opportunities while maintaining their distinct identities (Adler 1966; Varadarajan and Rajaratnam, 1986). A successfully pursued symbiotic marketic strategy will supplement capabilities, achieve economies of scale and scope, capitalize on resource limitations, lower business risks and better satisfy customer requirements (Varadarajan and Rajaratnam, 1986). McGrath’s (1964) studies organizational systems through examining inputs, processes, outputs and the links between them. This framework is helpful to identify and synthesize research on a wide variety of organizational topics ( Street and Cameron, 2007). In this study the effectiveness of strategic alliance is analysed using McGrath’s

Show More
Related

  • The Allies Model

    1602 Words  | 7 Pages

    Abstract People over the last few years have debated over if the science of psychology is compatible with Christianity. This never-ending debate has brought about many different models that their goals is to prove if these two ideas can be successfully integrated with each other. Out of all the models that are the effect of the debate between psychology and Christianity, the Allies model provides the greatest reasoning as to why integration of psychology and Christianity is a possibility. As well as explaining why the Allies model is successful at integrating the two ideologies, this paper will also explain the different strengths and limitations that this model encompasses.

    Read More

  • Alliances Dbq

    399 Words  | 2 Pages

    Alliances were extensively responsible for increasing tensions between nations. While there were various reasons for the increase in tension between nations, the Alliance system is considered to be the most prominent factor causing tension, which in turn, led to factors such as militarism becoming prevalent. Alliances drew together nations, but while in doing so, caused fear and distrust to prevail among other nations, therefore influencing them into creating their own alliances. When alliances are formed, especially any militaristic or colonial alliance, arms races are created as a byproduct. Arms races cause tension due to the threat of war from apposing sides, which segregates the nations and creates a distinct split in opinions, and thus segregates nations into sides.

    Read More

  • The Allies Model Analysis

    1201 Words  | 5 Pages

    In a small classroom at Liberty University, students enrolled in an upper level psychology course have discussed the various models of the integration of psychology and Christianity as proposed by David N. Entwistle (2015). The models that were discussed include Enemies, Foreign Spies, Domestic Spies, Colonialists, Rebuilders, Neutral Parties, and Allies. One specific part of the curriculum for the class includes the input of each student on which of these seven models seem to be the strongest. From the perspective of one student in particular, this paper considers and makes arguments supporting why the Allies model provides the best explanation for the integration of psychology and Christianity. In this paper the case for why the Allies model

    Read More

  • The Allies Model

    1766 Words  | 8 Pages

    Abstract Within Integrative Approaches to Psychology and Christianity, Entwistle inquires if psychology and theology can be unified. Entwistle suggest a sufficient technique of integration albeit the Allies model, and this paper will outline the strengths and restraints of this model as well as how Methods of Knowing and the Two Book Concept further discover the effectiveness of the model. The justification of this paper is to instruct its reader on different subjects of the Allies model concerning the integration of theology and psychology. In line with this, the advantages and drawbacks are shown as well as how this model deals with diverse concepts, and how it considers the relationship between Christianity and psychology.

    Read More

  • Differences Between The Private Sector, Public Sector And Voluntary Sector

    1912 Words  | 8 Pages

    Understand organisational structures 1.1 Explain the differences between the private sector, public sector and voluntary sector In the business world there is three main sectors that separate different organisations they are: The private or commercial sector, the public sector and Voluntary or not-for-profit sector. The Public sector aims for goals other than profit but are not operated by the authorities on the other hand the Private and Commercial sectors main aim is to make profit and is the crucial difference between an organisation flourishing and an organisation being liquidated. Unlike the Private and Commercial sector that are funded by either an owner or shareholders the Public sector is funded entirely by the government.

    Read More

  • Stakeholder Analysis Body Shop

    941 Words  | 4 Pages

    Stakeholder Analysis The answer to whether this partnership will be advantageous to both entities will hugely depend on how each of the management teams learn to understand, value and cater for various stakeholders involved. From an analytical perspective, a stakeholder approach can assist in promoting analysis of how the company fits into its larger environment and how its standard

    Read More

  • Gap Inc: Internal Analysis

    1380 Words  | 6 Pages

    Suggested cooperative business-level strategy Strategic Alliances Suggestion: as an owner of BabyGAP, GAP has a great opportunity to make a strategic alliances with other brands that is selling different line of baby products of what babyGAP is selling, like for example, make a strategic alliance with Chicco, which is selling baby products such as pregnancy and feeding products, baby feeding chairs, trollies, beds, hygiene products, etc. which will benefit both companies, both babyGAP and Chicco customers will find everything they want for their babies at the same place. 3. Suggested corporate-level strategies International expansion Suggestions 4.

    Read More

  • Barclays Competitive Advantage

    1910 Words  | 8 Pages

    Therefore, the source of competitive advantage for Barclays would be quality customer care as envisaged in their strategy in citizenship and continuous development of new and unique products for the market. The ability to enjoy economies of scale from supplies and large capital structure should also offer Barclays, a hand in increasing competition. Institutional capabilities and endowment Barclays bank has both physical and intangible resources to help it grow to a leading financial institution in its strategic plans. It has both distinctive and threshold capabilities to allow it create a competitive advantage against its rivals (Warner, 2010).

    Read More

  • Impact Of Digital Marketing And Online Brand Alliance

    1949 Words  | 8 Pages

    Leading brands have focused on building partnerships and alliances to reach each and every segment which has enabled these companies to offer more variety of products, better quality convenience and content. Alliances with leading portals search engines and websites helps in generating traffic and can provide brand a competitive edge over online customers because of its availability. 2.3.5 Importance of Online Brand Alliances Online brand alliances is relevant to the entrepreneurial firms who are unable to reach a wide variety of consumers and by utilizing this alliance they may overcome the problem of reaching economies and accessing markets. It helps the online retailing websites to get more popularity among B2B operating companies and helps in generating traffic through ppc (pay per click). While on the other hand it helps brick and mortar brands to reach the users worldwide and developing a two way relations with its customers.

    Read More

  • Tesco External Factors

    3270 Words  | 14 Pages

    Companies succeed if their strategies are appropriate for their circumstances they face, feasible in respect of their resources, skills and capabilities and desirable to their important stakeholders-those individuals and groups, both internal and external, who have a stake in the behaviour. or expectations of the organization’s performance and fluencies over the business. They include employees, managers, shareholders, suppliers, customers or clients, trade unions and the communities local and national in which the organisation operates. Companies fail when their strategies are failed to meet the expectations of these stakeholders or produce outcomes which are undesirable to them. So it needs to consider all implications of a shift in strategy, not simply the effect a specific stakeholders

    Read More

  • The Advantages And Disadvantages Of Ikea's International Strategy

    1026 Words  | 5 Pages

    Due to different country’s policy, different business model are required for IKEA to run their business. For examples, IKEA will need to implement joint ventures as their business model to become successful in the Indian and China marketplace. Since the government for these countries requires that local business operations own about 51% control by Indian nationals, IKEA 's should find the right partner for its own. There are some advantages and disadvantages for IKEA to implement Joint venture as their business model. For the advantages are provide an opportunity to IKEA to access to the new markets and distribution networks, increased capacity to expand their business in foreign market, IKEA can share the risks and costs together with their partners and it will help IKEA to access to local resources, including specialised staff, technology and finance aspect.

    Read More

  • Holiday Inn: Porter's Five Forces Of Industry

    1384 Words  | 6 Pages

    This model is considered as the most potent and useful tool and is widely used by organisations. This model deals with external factors that influence the nature of completion and internal factors how firms compete effectively to be more profitable. Porter’s 5 forces is used. Industry Rivalry : Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct competitors as numerous and/or equally balanced competitors may lead to intense competition. The rivalry for market share becomes intense when product differentiation and switching costs are

    Read More

  • The Pros And Cons Of Transaction Cost Theory

    1763 Words  | 8 Pages

    In the business environment, companies and other business players are related to each other through the exchange of relations, needs and competences. Companies do not contend on the personal level, they contend for the relationship level in the domestic and international environment. The relationships of companies in the local network can be used as ‘bridges’ in the international network. However the network approach also implies to move away from the unit conception of the firm towards more lasting relationships between firms constituting a strong structure where the international business takes place and

    Read More

  • Sainsbury's Strategic Analysis Essay

    975 Words  | 4 Pages

    Sainsbury's was set up in 1869 and since then, it has changed into the second most vital store chain in the UK, it works in more than 1200 general stores and solace stores where it uses more than 161,000 partners to facilitate the deliverance of the goods and services of the supermarket. , It is rated number 80 in the list that entails businesses whose total value add up to more than 5500 million euros in the world. By analyzing the strategic analysis of the company, we will be able to survey the strengths, opportunities, weakness and threats in the relationship with its structure and operations in the UK and general markets concerning its retail business. It also looks at a critical analysis and evaluation of the main future directions for strategic growth of the firm. The assets and ventures of the organization together ought to be utilized to eradicate the failures and the threats so as to build up a demanding philosophy against the dangers seen as threatening the progress of the company.

    Read More

  • Literature Review On Startup

    984 Words  | 4 Pages

    Literature Review: The purpose of this chapter is to present a review of literature relating to start-up business. The following are the literature review by different authors and different research scholars. Weiss: made a study in US and concluded that small businesses are generally less efficient when compared to large administrative companies and concluded that on an average, about half of total shipments in the industries covered are from suboptimal plants.

    Read More

More about Strategic Alliance Research Paper

Open Document