RETAIL MANAGEMENT

MID Q2

Name: Renz Collin R. Collantes Course: BSBA major in Marketing

Section: MKT C503-302K

STRATEGIC ALLIANCE
DISCUSS THE POOL RESOURCES THROUGH STRATEGIC ALLIANCES

A strategic alliance, also known as a strategic partnership, is a voluntary,

formal arrangement between two or more parties to pool resources to achieve a
common set of objectives that meet critical needs while remaining independent entities.
Strategic alliances involve exchange, sharing, or codevelopment of products, services,
procedures, and processes. Strategic alliances frequently call for contributions of
organization-specific resources and capabilities which may involve capital, control, and
time trade-offs.The overarching goal, to a greater extent than in the 1990s, is to
maintain long-term competitive advantage in a rapidly changing world, for example, by
lowering costs through economies of scale or increased knowledge, increasing access
to new technology, entering new markets, reviving slowing or stagnant markets,
reducing cycle times, improving quality, or impeding competitors.
Strategic alliances may be adaptable, and they can carry some of the liabilities
that a joint venture could. The two companies do not need to share funds and can
operate independently of one another.A strategic partnership, on the other hand, might
carry its own set of hazards. While the agreement for both companies is typically
explicit, there may be variations in how the firms do business. Distinctions can lead to
conflict. Furthermore, if the alliance requires the parties to disclose confidential
information, trust between the two allies is required.One partner in a long-term strategic
relationship may grow dependent on the other. Disruption of the relationship might
jeopardize the company's health.
Pooling resources may always make both partners more appealing. Marketing
skills, management, branding, and technical know-how are all examples of knowledge
sharing. The combination of these shared resources boosts the value of each partner in
ways that each firm can not achieve on its own. Sharing knowledge and resources
frequently accelerates time to market, decreases operational complexity, and improves
cost efficiency.