Marketing Management: Organizations Strategic Alliances

Marketing Management
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Strategic Alliances are agreements for cooperation among two or more independent organizations to work together toward common goals. Organizations in strategic alliances do not form a new organization to further their goals. They instead collaborate while remaining distinct and apart. Many organizations have decided to take up the role of creating alliances with other organizations as it is believed that not even giant organizations can be able to accomplish leadership either locally or internationally without developing strategic alliances with home or multinational organizations that leverage their strengths. An example of a developed alliance includes the star alliance, which is an alliance that has brought together 21 airlines into a large global partnership. Examples of the airlines that have brought together include the United Airlines, Singapore Airlines, and South Africa Airways. The alliance has proved to be of great significance because it has allowed customers to make coherent connections to hundred of destinations. Alliances that are efficiently managed to allow organizations to acquire a significant sales effect at a lower cost. It is important that organizations give a creative thought when finding partners that they want to form alliances with so that they can find those that will complement their strengths and offset their weaknesses. Organizations should also ensure that they develop organizational structures that support their alliances so that they can keep them thriving.
There are four main classifications of strategic alliances, and most of them are in the form of marketing alliances. The four main classifications of strategic alliances include commodity or service, promotional and logistic alliances and lastly pricing collaborations. The commod...