Manage Strategic AlliancesMore companies think that they must be a part of a strategic alliance in order to compete competitively. This would be ok, but strategic alliances have high failure rates because the alliance has failed to meet the goals of the parent company or could not deliver on the operational or strategic benefits they were meant to provide. The predicament is that firms need to grow, but this method does not work very well. Much research has been done on a single alliance between two or more firms, but what this article aims to evaluate firms involved in multiple alliances. In a single alliance, there are three steps to the alliance process. These three steps are formation, design and postformation. In the design phase, firms make the decision to work together. The second phase, the design phase, is when the firms set up a governance to oversee the alliance. The postformation phase is the daily effort that is required to keep the alliance working.
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