Strategic Alliance and Partnership
Part One the Recommended Coperation Partners
钻石商机—加纳和西非（BUSINESS OPPORTUNITIES IN GHANA WEST AFRICA）（点击进入）
Part Two the definition of Strategic alliance and the benefits from the partnership
Strategic
Alliance is an agreement between two or more organizations to cooperate in a
specific business activity, so that each benefits from the strengths of the
other, and gains competitive advantage. Its formation is a response to
globalization and increasing uncertainty and complexity in the business environment.
Strategic alliances involve the sharing of knowledge and expertise between
partners as well as the reduction of risk and costs in areas such as
relationships with suppliers and the development of new products and
technologies. In simple words, Strategic alliance is sometimes just referred to
as “partnership” that offers businesses a chance to join forces for a mutually
beneficial opportunity sustained competitive advantage.
The potential
benefits that international business may realize from strategic alliances are
as followings.
1.
Ease of market entry: advances in telecommunications,
computer technology and transportation have made entry into foreign markets by
international firms easier. Entering foreign markets further confers benefits
such as economies of scale and scope in marketing and distribution. The cost of
entering an international market may be beyond the capabilities of a single
firm but, by entering into a strategic alliance with an international firm, it
will achieve the benefit of rapid entry while keeping the cost down. Choosing a strategic partnership as the
entry mode may overcome the remaining obstacles, which could include entrenched
competition and hostile government regulations.
2.
Shared risks: risk sharing is another common rationale for undertaking
a cooperative arrangement- when a market has just opened up, or when there
is much uncertainty and instability in
a particular market, sharing risks becomes particularly important. The
competitive nature of business makes it difficult for business entering a new
market or launching a new product, and forming a strategic alliance is one way
to reduce or control a firm’s risks.
3.
Shared knowledge and expertise: Most firms are competent in some
areas and lack expertise in other areas; as such, forming a strategic alliance
can allow ready access to knowledge and
expertise in an area that a company lacks. The information, knowledge and
expertise that a firm gains can be used, not just in the joint venture project,
but for other projects and purposes. The expertise and knowledge can range from
learning to deal with government regulations,
production knowledge, or learning how to acquire resources. A learning
organization is a growing organization.
4.
Synergy and competitive advantage: achieving synergy and a
competitive advantage may be another reason why firms enter into a strategic
alliance. As compared to entering a
market alone, forming a strategic alliance becomes a way to decrease the risk
of market entry, international expansion, research and development etc. Competition becomes more
effective when partners leverage off each other’s strengths, bringing synergy
into the process that would be hard to
achieve if attempting to enter a new market or industry alone.
In retail, entering a new market is an
expensive and time consuming process. Forming strategic alliances with an
established company with a good reputation can help create favorable brand
image and efficient distribution networks. Even established reputable companies
need to introduce new brands to market. Most times smaller companies can
achieve speed to market quicker than bigger, more established companies.
Leveraging off the alliance will help to capture the shelf space which is vital
for the success of any brand.
Part two the Strategic Partners