When to decide on a strategic alliance?
Posted: Sun Dec 22, 2024 8:12 am
The main factor that drives companies to decide on a strategic alliance is risk reduction. Cooperation between two or more companies means that the risks of the project are shared between the partners, each of which retains its organisational independence. In addition, the costs of the union are lower than those of an investment made by each party separately, which in turn allows the company to diversify its product portfolio thanks to savings. According to Anna Pietruszka-
Otryl from the Chair of Organisational Behaviour at the philippine cp number University of Economics in Krakow, thanks to strategic alliances, companies become more courageous in entering new sectors, previously unknown to one of the parties, because they feel supported and introduced by a company with an established position in a given market.
Alliances also enable a significant reduction in production costs and increased benefits from economies of scale. Joint purchasing by cooperating companies improves the negotiating position vis-à-vis suppliers and enables volume and contractual discounts. In addition to price advantages, alliances also favour savings in delivery times and dates, which is particularly important in sectors where delivery times are an essential factor for success, for example just-in-time production.
A business alliance is also a great opportunity for pharmaceutical or biotechnology companies to develop a product more quickly and comprehensively. Cooperation saves time and money, which in a single production environment is spent on unnecessary duplication of development research. An example of an alliance in the biotechnology sector is the agreement between Innogenetics, a company that is one of the 81 corporate members of the European Biotechnology Association EuropaBio, and Sanfoi Aventis for Alzheimer's disease research. Each company provides the "missing pieces of the puzzle" such as technology, competences, knowledge or know-how, and the benefits of the cooperation are shared between the parties to the alliance.
A strategic alliance also allows you to build a strong and stable competitive position, both locally and internationally, more quickly and effectively than if you acted alone. In addition, companies can choose the best partner for you with the desired competitive advantage, which you will develop together in the future.
Otryl from the Chair of Organisational Behaviour at the philippine cp number University of Economics in Krakow, thanks to strategic alliances, companies become more courageous in entering new sectors, previously unknown to one of the parties, because they feel supported and introduced by a company with an established position in a given market.
Alliances also enable a significant reduction in production costs and increased benefits from economies of scale. Joint purchasing by cooperating companies improves the negotiating position vis-à-vis suppliers and enables volume and contractual discounts. In addition to price advantages, alliances also favour savings in delivery times and dates, which is particularly important in sectors where delivery times are an essential factor for success, for example just-in-time production.
A business alliance is also a great opportunity for pharmaceutical or biotechnology companies to develop a product more quickly and comprehensively. Cooperation saves time and money, which in a single production environment is spent on unnecessary duplication of development research. An example of an alliance in the biotechnology sector is the agreement between Innogenetics, a company that is one of the 81 corporate members of the European Biotechnology Association EuropaBio, and Sanfoi Aventis for Alzheimer's disease research. Each company provides the "missing pieces of the puzzle" such as technology, competences, knowledge or know-how, and the benefits of the cooperation are shared between the parties to the alliance.
A strategic alliance also allows you to build a strong and stable competitive position, both locally and internationally, more quickly and effectively than if you acted alone. In addition, companies can choose the best partner for you with the desired competitive advantage, which you will develop together in the future.