In-class Strategic Alliances

In-class Strategic Alliances - Chapter 8 Strategic...

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Chapter 8 Strategic Alliances Strategic Alliances
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10-2 Why does relationship matter? Increasing business complexity and pressure to improve. Reliance on fewer suppliers and increasing need for early supplier involvement. Increased outsourcing calls for greater collaboration with contract manufacturers and 3PL firms. Supply market constraints – collaboration may ensure supply in times of supply shortage. Fear of competitive disadvantage – collaboration associated with improved performance.
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10-3 Ways to Ensure Tasks Are Completed Internal Activities core strengths Acquisitions can be difficult and expensive (culture/competitors) Arm’s-Length Transactions short-term arrangement Strategic Alliances Strategic Alliances multifaceted, goal-oriented, long-term partnerships both risks and rewards are shared long-term strategic benefits for both partners
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10-4 Why Go for a Strategic Alliance? Why Go for a Strategic Alliance? Adding value to products Improving market access Strengthening operations Adding technological strength Enhancing strategic growth Enhancing organizational skills Building financial strength Downside Downside Core Competencies and Competitive Advantages could be compromised
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10-5 Third-Party Logistics (3PL) Focus on Core Strengths FLEXIBILITY
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In-class Strategic Alliances - Chapter 8 Strategic...

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