1. International Strategic Alliances

2. Benefits of Strategic Alliances
Potential Benefits
of Strategic Alliances
Shared Synergy
Ease of
Shared Knowledge and
Market
Risk and Competitive
Entry
Expertise Advantage

3. Types of Alliances
 Comprehensive
 Functional
– Production
– Marketing
– Financial
– Research and Development

4. Comprehensive Alliances
 Participating firms agree to perform
together multiple stages of the process by
which goods or services are brought to the
market
 Functional areas are intertwined between
firms
 Organized as joint ventures
 Achieves greater synergy through sheer size
and total resources

5. Functional Alliances
 Involve only a single functional area of
the business
 Integration is less complex
 Does not typically take the form of a
joint venture

6. The Scope of
Strategic
Alliances

7. Implementation of Strategic Alliances
Selection of partners
 Compatibility
 Nature of potential partner’s products
or services
 Relative safeness of the alliance
 Learning potential of the alliance

8. Form of Ownership
 Corporation
 Limited partnership
 Public-private venture

9. Joint Management Considerations
 Shared management agreements
 Assigned arrangements
 Delegated arrangements

10. Shared Management Agreement
Both partners
Partner 1 participate actively
Partner 2
Alliance

11. Assigned Arrangement
One partner takes
Partner 1 primary responsibility
Partner 2
Alliance

12. Delegated Arrangement
Both partners delegate
Partner 1 management to the
Partner 2
joint venture’s
executives
Joint Venture

13. Pitfalls of Strategic Alliances
Pitfalls
of Strategic Alliances
Incompatibility Access Distribution Loss Changing
of to of of Circum-
partners Information Earnings Autonomy stances