Analytical Steps in the Formation of Strategic Alliances Available to Purchase

Co‐operation between two or more firms joined in an alliance is becoming increasingly important in competitive international business. It is a means to an end whereby firms gain from each other′s respective qualities and attributes in aiming towards business success. The degree of commitment involved in such alliances varies from case to case but,nevertheless, must be handled properly from the outset to avoid problems for the parties concerned. The article delineates seven critical insights for developing and managing strategic alliances and each is discussed in detail. It is concluded that if these seven factors are analysed by each organisation at the outset of negotiations to form an alliance, then the chances of a strategic alliance succeeding are improved.