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Strategic Alliances

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Anonim

Currently most companies are aware of the need to compete. Despite this, many have had to close, and others are ready to do so.

A reason for this to a greater extent, due to the speed and impact with which changes in the environment are changing the business world.

This new organization makes world conditions determine local conditions, therefore, it can be said that the relationships between people, regions and developed countries in the world economy are active integration mechanisms that intensify and change economic life. The commercial opening that this new organization implies, allows the consumer to have access to the best product for each need, at a reasonable price and forces companies to open new markets, obtain higher profits, purchase products, compete with quality, while providing more opportunities and a better positioning in the market.

In order to provide solutions to customers, one of the additional manifestations of these organizations is the strategic alliances. These include core competencies, which are a strategic approach that integrate customer externalities and organizational internalities.

In other words, core competence is the initial strategy. In this way we go from a situation where we have core competencies, to increase our particular competences or to acquire the suitability that the organization needs.

Strategic alliances are frequently discussed today because in many cases they allow commercial alliances between neighboring countries to form commercial niches that do not represent great commercial importance within the countries, facilitating the penetration of local businessmen from an indirect way.

Definition

We have already seen how strategic alliances emerge as a phenomenon of global markets; not as an organization per se but as an arrangement or business between different firms.

Global alliances therefore arise within the global nature of markets and seek exchanges of information, market knowledge, new technologies, process techniques and management for the development of new products or to improve the distribution of those that are already in the market.

The mission is to build real conglomerates that work in different countries, that produce with the lowest possible costs but with the greatest efficiency, connected with the best communication equipment, and that can simultaneously source parts and finished equipment. The objective would no longer be just exporting to any market, but integrating the various parts of a business strategically located in various countries, taking advantage of the economic advantages each offers.

Because the economic reality has gone beyond the borders of the countries, its services are global and comprehensive and must be adequate to move and change according to the demands of the users. (Organization internalities and customer externalities.)

It should be clarified that it is not pertinent that this type of alliances be made between companies that make the same product, since the objective is to reduce fixed costs and expenses.

Importance

I consider these points to be the basic and fundamental for the success of the company that wants to compete in an increasingly competitive market:

  • Increase the benefits (Income) by using the comparative advantages that the global market allows. Own resources are not sufficient for a certain task. The risks of the project are too high for a single company. Obtain synergistic effects. Synergy (from Greek (synergy, cooperation).Active and concerted competition of various organs to perform a function. Coordination of various activities. When several people work together and coordinated in order to achieve the same goal, they are said to work with Synergy and will achieve the goal sooner and better than if they did each one separately. Achieve more results by joining efforts. More effectiveness.

How to deal with the concept of synergy?

Financial, purchasing, and integral production and service offer strategies are designed that allow firms to reduce costs, simplify and facilitate their access to capital markets, and make the most of their installation capacity; without neglecting the particularities of each company or reducing its speed of operation.

Why does a company go bankrupt?

The compulsory liquidation of many companies is almost always attributed to the economic recession, the drop in demand, the opening of the economy, insecurity, violence, the lack of experience of managers, the neglect of accounting procedures.. The least efficient companies have to die, it is the natural asepsis of the system, since many companies, which are not viable, consume capital, acquire raw materials and hire employees, with the risk of dragging suppliers or workers into a forewarned bankruptcy, all this It is thanks to the lack of a defined strategy, that simple and straightforward.

Steps to define the Strategy:

  • Identify and know the characteristics of the potential partner. Adjust administrative styles in associated firms. Synergy that benefits both parties. Conduct a competitive analysis within the firm, adapting if necessary the financial information system that allows at all times even after the alliance is made:

    Identify and analyze the most relevant factors that determine the level of competition in an industrial or commercial sector. Determine the competitive factors that represent opportunities or threats for the firm.

    Evaluate the firm's competitive position in the market. (How we are in relation to our competitors). If the above conditions are met, design a strategy that allows, in addition to an Absolute and Comparative advantage, a competitive advantage, that is: A set of conditions (strengths) that a company develops to be used in its competitive strategy. Conditions (strengths) developed and sustained by a firm that are reflected in a product or service, in order to improve its competitive position.

It must be difficult to imitate by other competitors, it must be sustainable (durable), it depends on the objectives of the firm.

Regarding competitive advantage, two generic ways are accepted with which businesses can develop a lasting competitive advantage:

1. Low cost. The basic emphasis of this strategy is to achieve low cost compared to the competitors. Cost leadership can be achieved through systems such as economy of production scale, learning curve effects, strict cost control, and cost minimization in areas such as research and development, service, sales force, or advertising.

2. Differentiation. The main accent of this strategy is to differentiate the product offered by the business unit, creating something that customers perceive as exclusive.

Analyze how the company's activities add value to the chain of customers who use its products or services, that is, define the value chain.

Bibliography

Bermúdez, Francisco J. The strategy of the new century. Ed. Blue Planet. Mexico

Nieves, Felipe. What are strategic alliances. Ed. HiTEK Patrick M. México

Strategic Alliances