Strategic Alliances and
F. Juergen Moy
D-82327 Tutzing am Starnberger See (Munich)
+49 (162) 701 6087
Success factors of strategic alliances
The success of any alliance very much depends on how effective the capabilities of the involved enterprises are matched and whether the full commitment of each partner to the alliance is achieved.
There is no partnership without trade-offs, but the benefits of it must preponderate to the disadvantages, because alliances are made to fill gaps in each other's capabilities and capacities. Poor alignment of objectives, performance metrics, and a clash of corporate cultures can weaken and constrain the effectiveness of the alliance effectiveness.
Some key factors that have to be considered to be able to manage a successful alliance include:
Further important factors
Advantages of strategic alliances
For companies there are many reasons to enter a 'Strategic Alliance':
Disadvantages of strategic alliances
Risks of strategic alliances
Using and operating Strategic Alliances does not only bring chances and benefits. There are also risks and limitations that have to be taken in consideration. Failures are often attributed to unrealistic expectations, lack of commitment, cultural differences, strategic goal divergence and insufficient trust.
Some of the risks are listed below.
Common mistakes of strategic alliances
Many Companies struggle to operate their alliances in the way they imagined it and many of these partnerships fail to reach their defined goals. There are some very "popular" mistakes which can be seen again and again.
Some are mentioned here.