Question

Explain any THREE (3) categories of strategic alliances that (Eastern and Oriental Berhad) property developer can apply to
penetrate the market. In addition, provide relevant example to show how your firm
applies each category in penetrating the identified market segment.

Answer 1

Answer:-

1.Joint Venture

• A joint venture is a child company of two parent companies. It’s maintained by sharing resources and equity with a binding agreement. Whether it’s formed for a specific purpose or an ongoing strategy, a joint venture has a clear objective, and profits are split between the two companies.
• In 2016, Google’s parent company Alphabet announced a joint venture with GlaxoSmithKline to research treating diseases with electrical signals. The joint venture, Galvani Bioelectronics, has continued to grow, bringing on more partners to build devices and further research in the emerging field of bioelectronics.

2. Equity Strategic Alliance

• An equity strategic alliance occurs when one company purchases equity in another business (partial acquisition), or each business purchases equity in each other (cross-equity transactions).
• An example of an equity strategic alliance is Tesla’s relationship with Panasonic. Their relationship began with a $30 million investment from Panasonic to accelerate battery technology for electric vehicles and grew to include building a lithium-ion battery plant in Nevada.

3.Non – Equity Strategic Alliance

• In a non-equity strategic alliance, organizations create an agreement to share resources without creating a separate entity or sharing equity. Non-equity alliances are often more loose and informal than a partnership involving equity. These make up the vast majority of business alliances.
• Taking equity-sharing out of the equation can be a strategic advantage in research and development, production, and sales and marketing. In the previously mentioned example of Galvani Bioelectronics, there are many non-equity strategic alliances that have grown out of the original joint venture through Project Baseline. This is a connected ecosystem of organizations all working together to create “a more comprehensive, precise map of human health.”