How an US firm may use Sales Promotion and Distribution infrastructure of an Indian firm to sell the products in India and in return the Indian firm can use the same strategy for the sale of its product in USA. (Hint – Strategic Alliance).
.......... The major strategic successes involving information technology in the last two decades have involved a redesign of inter-organizational relations. New product and service offerings, channel systems capabilities, and target marketing initiatives are enabled through these partnerships, alliances, and information interchange arrangements.
New organizational and market relationships are made possible through systems that cross organizational boundaries. In today’s ever changing environments strategic alliances have emerged as a driving force behind the success of many business ventures in India and US. Strategic alliances with US firm allow Indian firm to expand their reach without having to maximize their risk or commit themselves beyond their core business and vice versa. Alliances are a way of reaping the rewards of team effort - and the gains from forming strategic alliances appear to be substantial. Companies participating in alliances report that at much as 18 percent of their revenues come from their alliances. Increasing intensity of competition, a growing need to operate on a global scale, a fast changing marketplace, and industry convergence in many markets are the motivating factors of strategic alliance.
STRATEGIC ALLIANCES
....... The establishment of strategic alliances among organizations is a rapidly merging phenomenon, and has been given inadequate attention in many boardrooms. Many strategic alliances involve, and are predicated on, the availability of information technology that gives structure to these arrangements. Many forms of these strategic alliances exist. Alliances are formed for joint marketing, joint sales or distribution, joint production, design collaboration, technology licensing, and research and development. Relationships can be vertical between a vendor and a customer, horizontal between vendors, local, or global.
Businesses use strategic alliances to:
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