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This alliance maximized strength of both companies

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This alliance maximized strength of both companies without investment of equity by any 7
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partners. (Chang, 2008). According to the formation of strategic alliances explained above, Nike planned their strategy phase by finding the reasons to join a strategy alliance and selecting appropriate partner. Motivation associated with the practice was global branding, claiming that the latter is characteristic of strategic cooperation between well-known global brands that are recognized internationally (Chang, 2008). Therefore, Nike entered into an alliance with Apple enter new markets and to increase brand awareness among existing and potential customers, leading to the company exploiting potential synergies. Throughout the evaluation process, an increase in the market share price was expected, which resulted in the company running at a profit, which in turn had a positive impact on the shareholders. Hence, they were expected to achieve a competitive advantage amongst their competitors (Srinivasan, 2007). Both companies utilize their areas of expertise and popularity to capture new market and industry, as both companies were experts in their field of business and already had a strong market share. Thus, there was no significant weakness with this alliance, such that there would not be any default risk from one company itself. Both companies were ready to share their unique resources and capability to create competitive advantages in market (Martinez & Bastl, 2010). During the final phase- managin phase- of forming a strategic alliance, the companies measured the performances of their alliance. Feedback was given on the launch of new products and there was open communication between the companies (Ozsomer & Altares, 2008). Apple provided their knowledge in the field of electronics and Nike provided the alliance with the advanced technology and designs behind their running shoes. However, During the process of forming the alliance, the aforementioned companies faced problems as they were not from the same industry (Srinivasan, 2007). In case of failure of the alliance, Nike had high stakes to lose as they would have lost the great assets they invested in the alliance (Hanby, 1999). Nike faced problems concerning lack of creative idea and lack of people who wanted to work with people from other industry which created conflict. Hence, they practiced the 8
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Human resource practice, “Selective hiring” (Martinez & Bastl, 2010). Nike knew that they need employees who could add value to their company. They altered their process of hiring people to the company by recruiting individuals who are more creative, committed and able to communicate and socialize well with others. furthermore , the firm ensure they hire employees who can easily adapt to change. (Ozsomer & Altares, 2008).
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