Synergy One is strong where the other is weak. This is the major reason for and the advantage of the alliance. There must be a clear understanding of the value each partner will bring to the alliance. Balancing contributions This is needed in order to avoid one partner dominating the alliance. Implications Alliance building is now seen to be fundamental to the way large companies conduct business - from technology and product development to manufacturing and marketing.
Many trends point towards co-operation as a fundamental growing force in business.
Therefore, as interdependence grows toward a unified market, building stronger domestic and international business becomes a commercial necessity. The trend toward strategic alliance is clear, and not just a passing fad. When strategic alliances make sense by William A Drago suggests that strategic alliances have become a popular competitive weapon, yet knowledge of when effectively to use this inter-organizational relationship remains scarce. Here are the tests focuses on the practical side of strategy Access our Strategy Archive or follow the links below to focus on specific management disciplines. Your guide to recommended Strategy Websites and international Events .