Strategic Alliances in Businesses
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- Identify and explain at least two drawbacks to forming a strategic alliance.
- What are the advantages of strategic alliances and collaborative partnerships with key suppliers?
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Solution Summary
This solution explains strategic alliances in businesses. It helps identify and explains drawbacks of forming a strategic alliance. It also discusses the advantages of strategic alliances and collaborative partnerships with key suppliers.
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- In an increasingly competitive global marketplace, strategic alliances have become more common. One of the most prominent strategic alliances is evident in the airline industry where airline companies share flight routes, customers, and even collector miles. Starbucks is another example, where as a company, they have partnered with Barnes & Nobles (USA) and Chapters (Canada) to provide in-house coffee within those stores. However, one of the biggest disadvantages of a strategic alliance is the pretense that profits are shared. Like any partnership between two individuals in a company, few favor giving away a big cut of their profits to their partner. Depending on the agreements signed by ...
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