Presented by 4880229 Pakorn K. 4980362 Piti R. 4980412 Sutatip T. 4980418 Pornwalai Ph. What’s In It For You?. The reasons of strategic alliances are obvious when you understand the benefits of the alliances.
The reasons of strategic alliances are obvious when you understand the benefits of the alliances.
These are as follows:
Co-branding: snack manufacturers are now mixing two nationally known names and logos on a single product. For example, Betty Crocker’s Soda Licious, (soda pop fruit snacks), made with 7up and 7up cherry.
Access to new markets: both domestic and international may be available.
Positioning for the future needs: Through partnering, one company can assist another in leapfrogging current industry leaders. This would be done by cooperating with newer firms more willing to pursue a riskier development strategy to gain market share.
Sales leads and help in procuring new business
Opportunity to expand business using new or related product innovations and service offerings
Preferred supplier status: Steelcase in Grand Rapids, MI awards a designation as a preferred supplier to those who have proven their performance abilities.
Reduce direct competition: The Sun and IBM alliance has attempted this in creating the Java operating system to keep Microsoft at bay.
To gain market share: Coach, the New York headquartered manufacturer of fine leather products, teamed up with Lexus in an exclusive partnership to produce the limited Lexus ES 300 Coach Edition.
Geographic Expansion: the business can expand throughout different parts of the world with the benefits of becoming partnerships among domestic and international companies.
Create marketing synergism to the consumer through cross promotion: Blockbuster and Dominoes Pizza created a promotion that required a customer to rent three movies, in return they received a $10 saving book for Dominoes Pizza. Both partners got increased traffic through the joint promotion.
Barriers to market entry by a new player: This protects the current players and to find ways or methods that closed an opportunity to a new provider attempting to enter the market.
Marketing assistance to support order volume for product: This can happen when a small company develops an alliance with a large company who can assist with manufacturing, fulfillment, distribution, and so forth.
University of Toronto’s Innovations Foundation signed an agreement with Northway Explorations Ltd. To deliver polymer-modified asphalt materials technology for longer lasting roads.Innovation
Partnering in poor economy or recession when sales are flat and prices are deflating.
Working together are successfully purchasing goods in parity with the two giants in their industry
There are many supply chain improvement areas that can achieve from doing strategic alliance
For example The Arizona and California Departments of Transportation have successfully discovered that the partnering approach benefits
The benefit to developing strategic alliances with others will be found in creating solution through mutually beneficial efforts.
It can help you solve problems and get you much closer to your goals than working toward them w/o the relationship
In additional, it can improve the quality, productivity and profitability if you apply it decisively.Conclusion