Strategic alliance
(1)What are the different types of strategic alliances, and under what circumstances each alliance type is preferred?
(2)Can you describe and give examples of the three different types of strategic alliances? Can you also identify the conditions under which each type is preferred?
(3)What are some factors that must be considered before a company considers expanding internationally?
(4)Can you identify some of the core strategy issues that firms face when they go global? Can you provide company and/or industry examples to illustrate your key points?
(5)What affects does innovation have on competition and competitive advantage?
(6)What are four behaviors of business innovators that help them generate ideas for innovative strategies? Can you think of other behaviors or strategies that enhance a company’s ability to innovate?
(7)What do you know about “The tata Way: Evolving and executing sustainable business strategies”
(8)What do you know about “Strategic marketing developments in informational society”
Sample Solution
Strategic alliance
A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity. The deal between Starbucks and Barnes&Noble is a classic example of a strategic alliance. Starbucks brews the coffee. Barnes&Noble stocks the books. Both companies do what they do best while sharing the costs of space to the benefit of both companies. There are three types of strategic alliances: joint venture, equity strategic alliance, and non-equity strategic alliance. An equity strategic alliance occurs when one company purchases equity in another business [partial acquisition], or each business purchases equity in each other [cross-equity transactions]. An example of an equity strategic alliance is Tesla’s relationship with Panasonic. Their relationship began with $30 million investment from Panasonic to accelerate battery technology for electric vehicles and grew to include building a lithium-ion battery plant in Nevada.
