PARTICIPATION IN THIS DISCUSSION BOARD IS COMPULSORY. Pick any one term (only on
ID: 435313 • Letter: P
Question
PARTICIPATION IN THIS DISCUSSION BOARD IS COMPULSORY. Pick any one term (only one) and write a 300 word (or more) paragraph on it (including a definition, in your own words). If someone has already chosen a term, you cannot choose it. The terms include people, products, companies and concepts. I would also recommend that you make a 250 word comment on any one response made by a classmate. Here, multiple responses to a single posting are acceptable 1. Innovator's Dilemma 2. Strategic Alliances 3. Volcker Rule 4. Functional Structure 5. Tim Cook 6. Product Market Stakeholders 7. Leveraged Buyout 8. The Internet of Things 9. Abilify 10. Janet Yellen 11. Bitcoin 12. Warren Buffett 13. Rivalry (from Porter's 5 forces) 14. Power of Substitutes (from Porter's 5 forces) 15. Bargaining Power of Buyers (from Porter's 5 forces) 16. Bargaining Power of Suppliers (from Porter's 5 forces) 17. Barriers to Entry 18. Disruptive Technology 19. Resource-Based View of the firm 20. Core CompetenceExplanation / Answer
'Strategic alliance’ is an agreement between 2 firms which have decided to share resources to conduct a particular, mutually advantageous project. It is less binding & less involving than a JV, in which 2 firms typically pool their resources to create another business entity. Under a strategic alliance, every firm maintains its autonomy whilst obtaining a new opportunity.
Strategic alliances enable the 2 firms to function toward correlating/ common aims. The idea is for all sides to advantage in the short-run, long-run or both. The arrangement may be informal/ formal, but each side’s accountabilities must be unambiguous. Also, the arrangement may be in place over the short-run / long-run depending on the requirements & objectives of the sides involved.
Usually, strategic alliances permit the involved firms to pursue opportunities at a quicker rate than if the firms operated alone. It allows access to additional know-how and means owned by the other side, which may simplify the learning curve & lessen setup costs & time for the new pursuit.
This strategy gives more flexibility than JVs as the involved sides don’t need to merge any monies/ assets to proceed. Instead, the sides remain autonomous, which can aid uncomplicate the functioning of the arrangement when the 2 entities' business practices are quite distinct.
Though the agreement is characteristically clear for both the sides, the distinctions in how the businesses function can lead to conflict. Also, if the alliance needs informing one side of the other side’s proprietary info, there must be a great degree of trust between the leadership of the 2 entities.
In long- run alliances, the involved sides may become mutually dependent. Though the risk is less if the dependency is experienced by both sides, the risk can rise considerably if the dependence becomes single-sided as one side will obtain an advantage.
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