Requirements for successful marketing alliances

Abstract

With the increasing competitive environment confronting businesses on a global basis and the shrinking availability of investment capital, many organizations are looking to strategic alliances to be an instant solution for present marketing shortfalls. Research has shown that several critical factors must be considered if an alliance is to be proven effective in the marketplace. At the top of the list is compatibility between the two organizations involved. The corporate cultures should be somewhat compatible if the interface between the partners is to be effective. The bases of the alliance should center on knowledge transfer as the main reason for its continued operation. The linkages within the alliance can be unusual and creative provided one of two objectives is pursued – increased revenue or reduced costs.

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