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A Framework For Strategic Alliances

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2 A Framework for Strategic Alliances


There many difficult strategic issues that plays a part in the selection of appropriate strategic
alliances. In this chapter, Partnership for profit, Jordan Lewis introduces an effective general
framework for analyzing strategic alliances. This framework, which we briefly introduce in this
section, is very helpful for considering the kinds of supply chain related strategic alliances that
we are address in the rest of the section.
To determine whether a particular strategic alliance is appropriate for firm, consider how the
alliances will help address the following issues:
Adding value to product:
A partnership with the appropriate firm can help add value to existing products. For example,
partnership that improve time to market, distribution times, or repair times help to increase the
perceived value of a particular firm. Both similarly, partnership between companies with
complementary product lines can add value to both companies product.
Improving Market Access.
Partnership that leads to better advertising or increase access to new market channels can be
beneficial. For example, complementary product manufacturer can cooperates to address the
needs of major retailer, increase sales for everyone.
Strengthening Operations.
Alliances that between appropriate firms can help to improve operations by lowing system costs
and cycle times. Facilities, and recourses can be can be used more efficiently and effectively. For
example, companies with complementary seasonal product can effectively use warhouse and
trucks year around.

Adding Technologies Strength.


Partnership in which technologies is shared can help add to the skills base of both partners. Also,
the difficult transition between old and new technologies can be facilitated by the expertise of
one of the partners. For example, a supplier may need a particular enhanced information system
to work with a certain customer. Partnering with a firm that already has expertise in this system
makes it easier to address difficult technologies issues.
Enhancing Strategic Growth.
Many new opportunities have high entry barrier. Partnership might enable firms to pool expertise
and resources to overcome these barriers and explore new opportunities.

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