Strategic alliance success factors
The success factors of strategic alliances are:-
- Have a clear strategic purpose;
- Find a fitting partner with compatible goals and complementary capabilities;
- Identify likely partnering risks and deal with them when the alliance is formed;
- Allocate tasks and responsibilities to each partner;
- Create incentives for cooperation to minimize differences in corporate culture;
- Minimize conflicts among partners by clarifying objectives and avoiding direct competition in market place;
- Comprehensive cross- cultural knowledge should be ensured in an international alliance;
- Exchange human resources to maintain communication and trust;
- Operate with long- term time horizons;
- Develop multiple joint products so that any failures are counterbalanced by successes;
- Share information to build trust and keep projects on target. Monitor customer responses and service complaints;
- Be flexible and willing to renegotiate the relationship of environmental changes and new opportunities;
- Agree upon an ‘exit strategy’ when the alliance is judged a failure.
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