Generating Value to your company:

To make a strategic alliance prosperous, it is important that what you "bring to the table" is valuable. Your partnership offer should be valuable to both you and your potential partner.

Targeted Clients:

Specify the demographic details of your client base and work with your partners to target those specifics.

Strategic Management:

Like any business relationship, a strategic alliance must be managed and maintained properly. The more effort you place into partnership management, the more rewards you will receive from the relationship.

Easier access to target markets:

Introducing the product into a new market can be complicated and costly. It may expose the enterprise to several obstacles such as entrench competition, hostile government regulations and additional operating complexity. There are also the risks of opportunity costs and direct financial losses due to improper assessment of the market situations. Choosing a strategic alliance as the entry mode will overcome some of those problems and help reduce the entry cost. For example, an enterprise can license a product to its alliance to widen the market of that particular product.

Achieving synergy and competitive advantage:

Synergy and competitive advantage are elements that lead businesses to greater success. An enterprise may not be strong enough to attain these elements by itself, but it might possible by joint efforts with another enterprise. The combination of individual strengths will enable it to compete more effectively and achieve better than if it attempts on its own.

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