In the 1970s, strategic alliances focused on product performance. The partners wanted to obtain the best quality raw materials at the lowest possible price, the best technology and better market penetration, while the focus has always been on the product. Michael Porter and Mark Fuller, founding members of the Monitor Group (now Monitor Deloitte), distinguish between strategic alliances according to their objectives: in each partnership, transparent communication is needed. Both parties can use a SWOT analysis to identify risks and threats in the first place. An organization that says it is ready to form a strategic alliance knows what it wants from the beginning. Both organizations know that they will never settle for less than what they already have and what they want to accomplish. Open communication during the Alliance also helps to cope with sudden changes and unpredictable events. An exchange of views and conflicting ideas between partners can lead to more productive cooperation. One of the potential drawbacks of promoting new alliances is the misinterpretation of the benefits that each company can bring. One party can develop an exaggerated understanding of what the other party has to offer. Suppose Company A expects, for example, that Company B will provide more resources with more equipment, but Company B is not able to do so. The excessive expectation of Company A may be due to misunderstandings about the statement of Company B.
A simple misunderstanding could lead to the decline of the partnership. Who would have thought that cooperation would bring a competitive advantage to the economy? With the fourth wave of the industrial revolution, cooperation became a decisive factor for the success of a company. When the corporate giants started the movement to collaborate with other brands, small businesses began to follow suit. If you decide to follow the trail, here you will find a short process to build an alliance that benefits your organization. Companies have many reasons for entering into a strategic alliance: the analysis phase sets performance targets for the partnership. These objectives are used to determine the general skills of the business that are needed. During the selection phase, these performance objectives are used as criteria for evaluating and selecting potential alliance partners. The most frequent activities related to the analysis phase are: The use and operation of strategic alliances are not just opportunities and benefits. There are also risks and restrictions that need to be taken into account. Failures are often attributed to unrealistic expectations, lack of commitment, cultural differences, strategic differences and lack of confidence.