Learning objective

After reading the component you will be able to identify what strategic alliances are, why they are important and the stages to follow to form and support an alliance. It will take 40-50 minutes to go through this module.


Are you looking for a way to speed up entry into a new market, improve your productivity, gain a competitive edge or increase your range of products? A strategic alliance may be your answer.

Imagine the following situation: your company has the technical know-how (an innovative idea), another has the resources to bring that know-how to market. But without the ability to build, implement and sustain proper alliances, your company may be unable to leverage the resources of even the best combination of firms.

At the beginning of the 21st century most business organisations have concluded that they cannot go it alone. They have discovered that they need to establish strategic alliances in both their supply and delivery chains to survive.1

These strategic alliances may be with single partners or with many. In most cases these relationships are formed in order to achieve one of three things:2

  1. Develop new products or services (Innovation)
  2. Develop new business cost effectively (Business development)
  3. Reduce costs in supply chains

1 www.alliancebestpractice.com   
2 lbid



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