In a global strategic partnership, two or more firms from different countries work as a team. They pool their resources or skills to provide better products or services. Furthermore, they reach a broader audience through collaboration. Firms engage in global strategic partnerships because they believe the partnership will lead to synergy, which means increased economic benefits.

1. Global Strategic Partnerships
NURUL AMIN
MBA 3RD SEM 2ND YEAR
ROLL NO. 5
GOENKA COLLEGE OF COMMERCE OF BUSINESS
ADMINISTRATION

2. In a global strategic partnership, two or more firms from
different countries work as a team. They pool their
resources or skills to provide better products or services.
Furthermore, they reach a broader audience through
collaboration. Firms engage in global strategic
partnerships because they believe the partnership will lead
to synergy, which means increased economic benefits.
Introduction

3.  Participants remain independent following formation of
the alliance.
 Participants share benefits of alliance as well as control
over performance of assigned tasks.
 Participants make on going contributions in technology,
products, and other key strategic areas.
Nature of Global Strategic Partnerships

4.  Two or more companies develop a joint long-term
strategy.
 Relationship is reciprocal.
 Partners’ vision and efforts are global.
 Relationship is organized along horizontal lines(not
vertical).
 When competing in markets not covered by alliance,
participants retain national and ideological identities.
Attributes of Global Strategic
Partnerships

5.  Mission- Successful GSPs create win-win situations, where
participants pursue objectives on the basis of mutual need or
advantage.
 Strategy- A company may establish separate GSPs with different
partners; strategy must be thought out up front to avoid conflicts.
 Governance- Discussion and consensus must be the norms.
Partners must be viewed as equals.
 Culture- Personal chemistry is important, as is the successful
development of as hared set of values.
 Organization- Innovative structures and designs may be needed to
offset the complexity of multi-country management.
 Management- Potentially divisive is sues must be identified in
advance and clear, unitary lines of authority established that will
result in commitment by all partners.
Success Factors

6.  Apple & IBM: To quote IBM, its new partnership with
Apple “brings together the analytics and enterprise-scale
computing of IBM with the elegant user experience of
iPhone and iPad to deliver a new level of value for
businesses”.
GSPs – Examples (Success)

7.  Spotify & Uber: Another genius partnership. The ability
to enter a hired car welcomed by your favourite playlist
provides added value, meaningful competitive advantage
and exclusivity for Uber cars. For Spotify, it provides an
incentive for users to upgrade to the premium level and a
unique point of difference that Pandora, iTunes or
YouTube don’t have.
GSPs – Examples (Success)

8.  Alliance business is viewed internally by one partner.
 One of the partners is too dependent on the other’s
capabilities.
 Problems and dilemmas of mistrust.
 Cultural & language barriers.
 Collaboration in competitively sensitive areas can be
difficult.
 A clash of egos might occur.
Mistakes Leading to Failure

9. Hero Honda: Hero wanted to export his motor bikes to
other EU nations, and Honda on the other hand didn't
agree. Honda was already selling it's Motors to most of the
country and certainly no one would want to compete our
own brand.
So they mutually ended their pact in a very positive way.
GSPs – Examples (Failure)

10. Thank You