Using an Internet search engine, search for “strategic alliance,” and identify t

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An arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity. A strategic alliance could help a company develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities.

A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. This form of cooperation lies between mergers and acquisitions and organic growth. Strategic alliances occurs when two or more organizations join together to pursue mutual benefits.

Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.

Three recent alliances:

Apple & IBM: To quote IBM, its new partnership with Apple “brings together the analytics and enterprise-scale computing of IBM with the elegant user experience of iPhone and iPad to deliver a new level of value for businesses”. The alliance will draw on Apple’s consumer experience, hardware and software integration and help invigorate IBM’s image, which has sagged a bit in recent years. The partnership will leverage IBM’s big data analytics and more than 100,000 industry sales consultants and software developers, to help Apple penetrate the global corporate enterprise market. To quote Apple “the partnership will add a new class of apps to connect users to big data & analytics, on their iOS devices”.

Google & Luxottica: The Google/Luxottica partnership is a brilliant one. Google glasses speak to technology but not fashion and Luxottica’s brands speak to fashion and not tech. The partnership will result in attractive Google glasses that could be purchased based on looks alone, and the cutting edge technology can give Luxottica brands a reason for purchase that justifies a premium price. Luxottica’s glasses are increasingly being undercut on price by retailers such as Costco, TJ Maxx and Warby Parker.

Spotify & Uber: Another genius partnership. The ability to enter a hired car welcomed by your favorite playlist provides added value, meaningful competitive advantage and exclusivity for Uber cars. For Spotify, it provides an incentive for users to upgrade to the premium level and a unique point of difference that Pandora, iTunes or YouTube don’t have.

Examples of Successful Strategic Alliances

Starbucks

According to Rebecca Larson, assistant Professor of Business at Liberty University, Starbucks partnered with Barnes and Nobles bookstores in 1993 to provide in-house coffee shops, benefiting both retailers. In 1996, Starbucks partnered with Pepsico to bottle, distribute and sell the popular coffee-based drink, Frappacino. A Starbucks-United Airlines alliance has resulted in their coffee being offered on flights with the Starbucks logo on the cups and a partnership with Kraft foods has resulted in Starbucks coffee being marketed in grocery stores. In 2006, Starbucks formed an alliance with the NAACP, the sole purpose of which was to advance the company's and the NAACP's goals of social and economic justice.

Apple

According to "An Overview of Strategic Alliances," Apple has partnered with Sony, Motorola, Phillips, and AT&T in the past. Apple has also partnered more recently with Clearwell in order to jointly develop Clearwell's E-Discovery platform for the Apple iPad. E-Discovery is used by enterprises and legal entities to obtain documents and information in a "legally defensible" manner, according to a 2010 press release.

Hewlett Packard and Disney

Hewlett-Packard and Disney have a long-standing alliance, starting back in 1938, when Disney purchased eight oscillators to use in the sound design of Fantasia from HP founders Bill Hewlett and Dave Packard. When Disney wanted to develop a virtual attraction called Mission: SPACE, Disney Imagineers and HP engineers relied on HP's IT architecture, servers and workstations to create Disney's most technologically advanced attraction.

Goals of strategic alliances:

For companies there are many reasons to enter a Strategic Alliance:

References:

http://www.theneweconomy.com/home/strategic-alliance-ibm-apple

http://smallbusiness.chron.com/examples-successful-strategic-alliances-13859.html

http://www.onrec.com/news/news-archive/iqnavigator-signs-three-new-strategic-alliances-for-better-contingent-workforce-ma

http://www.forbes.com/sites/michellegreenwald/2014/12/11/11-of-the-bestsmartestmost-interesting-strategic-brand-partnerships-of-2014/#5ff5a8641d52

http://www.investopedia.com/terms/s/strategicalliance.asphttps://en.wikipedia.org/wiki/Strategic_alliance#Goals_of_strategic_alliances

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