Question

Discuss some of the challenges that managers must overcome in making strategic alliances successful. What are some strategic alliances with which you are familiar? Were they successful or not? Explain

*Please use different answer from the chegg because my friend already using it. Thankyou.

Answer 1

The Strategic Alliance is the partnership between the two or more organization whereby resources, core competences and capabilities are combined together for set of time period in order to pursue mutual interest. The strategic alliances gains the competitive advantage through access to the partners including markets , capital , people and technologies. The strategic alliance may be challenging for manager . The selecting the right partner may be challenging, sometimes it is very difficult to get two companies to work towards common goal, specially when it involves in the change in status quo. Each company will have different policies and rules and regulations and their work culture may be different so sometimes it becomes very challenging them to work together. The information sharing between the two or more partner may be challenging for manager, manager need not to trust partner in order to share the information. But manager must know what information not needed to share.

The strategic alliance between the Starbucks and the Pepsico created the well know coffee flavored drink called Frappacino. It helped Starbucks to move bottled beverage market and Pepsico gained innovative product with the help of well branded partner in this way both the companies met their operational and strategic goals. Another example is Strategic alliance between Starbucks and Kraft 's Maxwell House. Starbucks gained advantage from Maxwell house extensive network of shelf space and the Maxwell house gained the benefit from Customer liked Starbucks coffee brand.