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This 16 page paper examines strategic alliances, what they are, how they occur, their different forms and why they are used. The paper considers the advantages and disadvantages of strategic alliances and the factors which may indicate success or failure. Numerous studies are references ands many real life examples are used to illustrate the points raised. The bibliography cites 16 sources.
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16 pages (~225 words per page)
File: TS14_TEstratA.rtf
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benefit that will create value either directly or indirectly. Strategic alliances have been seen in all industries from manufacturing to services, therefore, the perception is usually one that is positive.
The reasons they may enter into the alliance will also be divergent just as the results will be different. For the purposes of this paper the definition of the
term strategic alliance will be taken from Arino et al (2001); "a formal agreement between two or more business organizations to pursue a set of private and common interests through
the sharing of resources in contexts involving uncertainty over outcomes". There are many forms a strategic alliance may take. The arrangement may be
merely a formal agreement where two or more parties agree to work together to their mutual benefit (Thompson, 1998). This may be a market agreement or even a research agreement.
An example of this may be seen with Club Meditranee and Carnival Cruise lines in order to promote holidays that were cruise based for the European and Asian Markets (Thompson,
1998). The strategic alliance between Nintendo and Philips to create video games on compact discs also falls into this category. Airbus Industries was also created in this manner as
no single partner in the alliance could afford to undertake the research and development required (Thompson, 1998). Special agreement may also come
under this first form, such as that seen between GKN and Jaguar Cars when, in 1988, it was agreed that GKN would be the sole supplier to Jaguar Cars.
The second form a strategic alliance may take is that of a of a joint venture, where a separate entity or company is
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