Strategic Alliances

Strategic Alliances

Introduction

Strategic Alliances is an agreement between two or more parties in order to meet the business requirements without involving into the internal matters of each others. The advantage of strategic alliances is that partners hope that they will have more profit than putting individual efforts. Strategic alliances can be of various types and ranging from informal cooperation to joint ownerships. Few contractual agreements are also termed as strategic alliances because these agreements may involve a very long and continuous strategic partnership, and provide strategic benefits for partners.

Discussion

Strategic alliances can be used for numerous purposes by the partners who are involved in agreements. A detailed agreement which is also a trusted agreement between two parties such as producer and supplier firm may be called a strategic alliance. This is easy because there are no necessities of entering into a open market and, these agreements are also costs savings.

Types of Strategic Alliances

Strategic Alliances are also termed as international coalitions, strategic network but, most important term is Strategic Alliances. Alliance is joining and adding of teams either in business or any other field.

If we take an example of banking, the services of exporting can be done through alliance partners rather than direct investment or contracting was rare. According to the research, large banks possess many relationships around the world, and also to any overseas affiliates they may work. It is also noted that banks use various bank alliances in order to give automatic teller machine (ATM) and give facilities to their consumers at different places, and provide credit card alliances with the help of Visa and MasterCard in order to give services globally to their clients, working competitively with real or potential competitors.

Companies focus to enter into foreign markets and this is a primary objective of many companies when entering strategic alliances. Many companies have missions to defend home markets. Companies which are related to technology have also entered into alliances in order to win over markets to operate according to the standard. All forms of alliances are different in terms of the amount of commitment required, and also the degree of control every partner has but, the number of partners and the extent of equity involved.

Strategic Marketing

Strategic marketing is the strategic management with other functions of the management. The basic aim is to consider the profit of the organization and the stake holders. In short, market system should consider the things such as research area, needs and demands of the consumers, Development of the products and sometimes redevelopment and advertisement. The goal of any marketing organization includes the maximum production, increase customer satisfaction, and increase life quality. The marketing can also be responsive marketing when the company consider the needs and also prepare the solution of that need immediately (e.g. women and housewives spend plenty of time in cooking and washing, there needs fulfill by making latest washing machines and micro waves etc.). There is also difference between market driven companies and market driving ...