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.