Strategic Alliance Examples
In ever-increasing numbers, both
small and large companies are forming strategic alliances to move their
businesses forward. Below are examples of how large companies rely on strategic
alliances and joint ventures to boost their businesses – working smarter (not
harder) is not just for small businesses.
Starbucks
According to Rebecca Larson,
assistant Professor of Business at Liberty University, Starbucks partnered with
Barnes and Nobles bookstores in 1993 to provide in-house coffee shops,
benefiting both retailers.
In 1996, Starbucks partnered with
Pepsico to bottle, distribute and sell the popular coffee-based drink,
Frappacino. A Starbucks-United Airlines alliance has resulted in their coffee
being offered on flights with the Starbucks logo on the cups and a partnership
with Kraft foods has resulted in Starbucks coffee being marketed in grocery
stores.
In 2006, Starbucks formed an
alliance with the NAACP, the sole purpose of which was to advance the company’s
and the NAACP’s goals of social and economic justice.
Starbucks
has also opted to enter into a strategic alliance with Tata Group as it
attempts to establish a position in the Indian market.
On 31
January 2012, Starbucks announced its objective to open 50 outlets in India by
the end of 2012, through a 50-50 joint venture with Tata Global Beverages. The
two partners will invest a total of $80 million initially.
Apple
According to “An Overview of
Strategic Alliances,” Apple has partnered with Sony, Motorola, Phillips, and
AT&T in the past. Apple has also partnered more recently with Clearwell in
order to jointly develop Clearwell’s E-Discovery platform for the Apple iPad.
E-Discovery is used by enterprises and legal entities to obtain documents and
information in a “legally defensible” manner, according to a 2010 press
release.
Hewlett Packard and Disney
Hewlett-Packard and Disney have a
long-standing alliance, starting back in 1938, when Disney purchased eight
oscillators to use in the sound design of Fantasia from HP founders Bill
Hewlett and Dave Packard. When Disney wanted to develop a virtual attraction
called Mission: SPACE, Disney Imagineers and HP engineers relied on HP’s IT
architecture, servers and workstations to create Disney’s most technologically
advanced attraction.
Eli Lilly
Pharmaceutical giant Eli Lilly has
been forming alliances for nearly a century, according to its brochure, Power
in Partnerships, and was the first in their industry to establish an office
devoted to alliance management. Lilly currently has over one hundred
partnerships around the world devoted to discovery, development, and marketing.
For example, Lilly partners with the Belgium-based company Galapagos to develop
treatments for osteoporosis.
Lilly also partners with Canada’s
BioMS medical group in a licensing and development agreement for a novel
treatment for multiple sclerosis. In Japan, Lilly is partnering with Kyowa
Hakko Kogyo Co., Ltd., to bring a
targeted cancer treatment to market. Lilly will have the exclusive license to
develop and sell the product worldwide except in Japan, and the two companies
will share rights in certain Asian countries.
Dutch Airlines
The strategic alliance between the
Dutch airline KLM and the American carrier Northwest Airlines is a famous
example of a strategic alliance that allowed two companies to share their
routing networks but still remain distinct companies.
McDonalds
McDonalds has long partnered
with many companies such as Disney, Mattel, and Hasbro in order to have
products for their happy meals. It’s a win-win for the partnership, increasing
brand awareness and association.
Strategic alliance
Strategic alliance