Strategic Alliance MGMT 449

What is a strategic alliance?

It’s a cooperative relationship between two or more firms where they share resources to pursue common goals, while staying independent.

Do companies merge in a strategic alliance?

No — they stay separate companies but work together for mutual benefit.

What are the main benefits of a strategic alliance?

• Access to new markets

• Shared resources

• Boosted innovation

• Importing capabilities from outside the company

• Gaining allies when facing competitive threats (like envelopment)

What are common types of strategic alliances?

• Joint ventures

• Licensing agreements

• Research collaborations

• Partnerships

In what kind of industries are strategic alliances especially valuable?

Industries with rapid tech change or intense competition.

Can strategic alliances be used in two-sided markets?

Yes — especially where platforms connect two distinct groups (like buyers and sellers) and benefit from collaboration.

What do firms need to successfully manage a strategic alliance?

• Clear goals

• Strong communication

• Aligned interests

• Trust, coordination, and knowledge sharing (called relational capability)

What is relational capability?

A company’s ability to manage partnerships through trust, coordination, and communication.

What is systems integration capability?

The ability to coordinate and connect outsourced activities across the value chain.

What are examples of strategic alliances?

• Tesla & Panasonic (batteries)

• Apple, Amazon & Google (smart home tech)

• Disney & Siemens (theme park innovation)

Which statement would NOT be true about strategic alliances?

Anything that suggests companies fully merge, give up independence, or don’t collaborate — that would be false.