Scope of strategic alliance

• Comprehensive alliances
• Functional alliances

Comprehensive alliances:comprehensive alliance  arise when the participating firm agree to perform
together multiple stages of the process by the process by which goods or service are brought to the market:
R&D, design, production, marketing and distributors. because of the broad scope of such alliances, the firms
must establish procedures for meshing such functional areas as finance, production, and marketing for the
alliance to succeed.
Functional alliances:  A production alliance is a functional alliance in which two or more firm
each manufacture products or provide services in a shared or common facility. A production alliances
may utilize a facility one partner already owns.
 MARKETING ALLIANCES: A Marketing alliances is a functional alliances in
which two or more firm share marketing services or expertise. in most cases, one
partner introducers its products or services into a market in which the other partner
already has a presence. The establish firm help the newcomer by promoting,
advertising, and/or distributing its products or services.
FINANCIAL ALLIANCES:  A financial alliances is a functional alliance of firm that want to
reduce the financial risks associated with a project. Partners may share equally in contributing
financial resources to the project, or one partner may contribute the bulk of the financial while the
other partner provides special expertise or makes other kinds of contributions to partially offset its
lack of financial investment.

RESEARCH AND DEVELOPMENT ALLIANCES:

Rapid technological change in high-technology industries and the skyrocketing cost of staying abreast of that
change have prompted an increase in functional alliances that focuses on R&D. in an R&D alliances, the partners
agree to undertake joint research to develop new product or services.