strategic alliance and intellectual property rights
TRANSCRIPT
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Introduction
Strategic alliances are the competitive weapon of21st century.
It provides an opportunity for large and small hightechnology companies to expand into new
markets by sharing skills and knowledge.In this firms co-operate out of mutual need andshare the risks to reach a common objective.
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Strategic alliance
Definition Acc to Chan and Heide defined strategic allianceas it is a contractual agreement amongorganizations to combine their efforts and
resources to meet a common goal. However it can also be defined as A strategicalliance is an agreement between two or morepartners to share knowledge or resources, which
could be beneficial to all parties involved.
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Agreement for cooperation among two or moreindependent firms to work togethertoward common objectives. Unlike in a jointventure, firms in a strategic alliance do not form anew entity to further their aims but collaboratewhile remaining apart and distinct.
A Strategic Alliance is a relationship between twoor more parties to pursue a set of agreed upongoals or to meet a critical business need whileremaining independent organizations.
http://www.businessdictionary.com/definition/agreement.htmlhttp://www.businessdictionary.com/definition/cooperation.htmlhttp://www.businessdictionary.com/definition/independent.htmlhttp://www.investorwords.com/1967/firm.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/common.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/joint-venture-JV.htmlhttp://www.businessdictionary.com/definition/joint-venture-JV.htmlhttp://www.businessdictionary.com/definition/form.htmlhttp://www.businessdictionary.com/definition/entity.htmlhttp://www.businessdictionary.com/definition/aim.htmlhttp://www.businessdictionary.com/definition/aim.htmlhttp://www.businessdictionary.com/definition/entity.htmlhttp://www.businessdictionary.com/definition/form.htmlhttp://www.businessdictionary.com/definition/joint-venture-JV.htmlhttp://www.businessdictionary.com/definition/joint-venture-JV.htmlhttp://www.businessdictionary.com/definition/joint-venture-JV.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/common.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.investorwords.com/1967/firm.htmlhttp://www.businessdictionary.com/definition/independent.htmlhttp://www.businessdictionary.com/definition/cooperation.htmlhttp://www.businessdictionary.com/definition/agreement.html -
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Acc to Chan and Heide defined strategic allianceas it is a contractual agreement amongorganizations to combine their efforts andresources to meet a common goal.
However it can also be defined as A strategicalliance is an agreement between two or more
partners to share knowledge or resources, whichcould be beneficial to all parties involved.
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Reasons for strategic Alliance
Gain access to a new or restricted market
Develop new goods or servicesFacilitate new market entry
Share significant R&D investments
Share risks against uncertainty
Develop market power
Gain access to complementary resources
Build economies of scale
Meet competitive challengesLearn new skills and capabilities
Outsource for low costs and high quality output
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Process of strategic alliances
SELECTION OF SUITABLE PARTNER
NEGOTIATION OF EACH OTHERS NEEDS
MANAGEMENT TOWARDS COLLABORATION
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Stages in Alliance Formation
Strategy Development
Partner Assessment
Contract Negotiation
Alliance Operation
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An alliance can fail for many reasons failure to understand and adapt to a new style of
management failure to learn and understand cultural
differences between the organizations
lack of commitment to succeed
strategic goal divergence insufficient trust
operational and geographical overlap
unrealistic expectations
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Joint VenturesA union of two or more parties who
contractually agree to contribute to a specificventure which is usually limited to a specific taskfor a specific period of time
A joint venture is a separate legal entity
generally governed under partnership lawwhichvaries from state to state
The JV parties can be individuals, partnerships orcorporations that continue to operate
independently from the other except for activitiesrelated to the Joint Venture.
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Joint Venture Strategic AllianceThis is where two businesses may join together toform a separate business, owned by bothcompanies. Many companies who are incompetition with one another, will join forces andshare the market.
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Pros and cons of Joint VenturesAdvantages
Allows for sharing of risk (both financial and political) Provides opportunity to learn new environment
Provides opportunity to achieve synergy by combiningstrengths of partners
May be the only way to enter market given barriers to
entry
Disadvantages
Requires more investment Must share rewards as well as risks
Requires strong coordination
Potential for conflict among partners
Partner may become a competitor
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INTELLECTUAL PROPERTY RIGHTS
Patents--------Offers a 20 yrs monopoly.
Copy Rights----Provides exclusive rights tocreative individuals for the protection of theliterary or artistic productions.
Registered Designs----As protected byregistration is for the outward appearance of anarticle and provides exclusive rights for up to 15yrs.
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Registered Trademark---Is a distinctive name,mark or symbol that is identified with a companysproducts.
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