Sports License 8.1: Strategic Alliance and Licensing Plan

This report analyzes strategic alliance structures, including horizontal, vertical, intersectional, joint ventures, equity, and non-equity alliances, along with their respective trade-offs. It defines the criteria for a successful strategic alliance, emphasizing understanding, time management, limited alliances, good connection, trust, intense relationships, and clear goals. The report then shifts to a licensing plan for the World Triathlon Corporation (WTC), the owner of the Ironman Triathlon. It outlines the process of identifying licensing opportunities, including products and categories beyond physical merchandise. The report further establishes three licensing business objectives for the WTC plan, prioritizing identified licensing opportunities for each objective and discussing their alignment with the business goals. The student has provided a detailed analysis of the strategic alliances, the WTC licensing plan and the Ironman brand opportunities.

Running head: SPORTS LICENSE 8.1
SPORTS LICENSE 8.1
Name of the Student
Name of the University
Author Note

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Q. Describe the different types of strategic alliance structures that can exist and some of
the trade-offs of each. How do you know that a strategic alliance is “successful”? What
criteria can you use to judge this?
A strategic alliance or partnership refers to an agreement of cooperation between two
or more independent organizations to develop, manufacture or sell services or products. The
strategic alliance helps in the possession of business assets and companies can enhance each
of their businesses with the help of an expertise. The types of strategic alliance are (Albers,
Wohlgezogen & Zajac, 2016):
Horizontal strategic alliances – They are formed by companies that happened to be
competitors but allied to improve their market position as well as market power. The
companies can access both tangible and intangible resources.
Vertical strategic alliance – It is the alliance between the organization and its
distributors and suppliers in order to enlarge the network of the company.
Intersectional strategic alliance – In this case, neither of the companies are in direct
touch with each other nor do they operate in the same business field.
Joint Ventures – Here two or more companies leads to the formation of a totally
new company having a different legal entity and is very essential for those who prefer long-
tem, business relationship. The trade-offs in this cases owners of the company formed would
have equal share of profits and losses, or in one word, no extra benefits or liabilities would be
enjoyed or suffered by them.
Equity alliances – They are formed when a company achieves the equity stake of
another firm and vice versa. Thus they can not only share common goals but profits as well.
Hence the competition is also reduced between the firms. The trade-offs between the
organizations in these alliances would be able to enjoy same amount of liabilities or benefits.

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Everything would be shared equally by the shareholders of the companies entered in this
alliance.
Non-equity alliance – it covers a wide range of cooperation possibilities among
companies which can be either contractual or informal. This type of alliance is applicable for
smaller enterprises.
A strategic alliance can be “successful” depending on how efficiently the companies
can match their capabilities and how far each of them can achieve their overall commitments.
Partnerships are incomplete without trade-offs but the advantages must overpower the
drawbacks. There are certain key factors that help to build a successful strategic alliance
(Christoffersen, Plenborg & Robson, 2014):
Understanding – the allied companies must have a clear view and understanding of
the available resources of each of its partners before setting the goals.
No time pressure – for establishing a working alliance, making a plan or designing
channels of communication, the managers should take enough time for a successful outcome.
Limited alliances – a few drawbacks of the company are unavoidable; therefore, a
limitation is must for the amount of alliances formed to reach the goals.
Good connection – possessing efficient managers is another criterion for a successful
alliance, who is not only an expertise in the required market fields but also must be capable of
integrating several departments even across the boundaries.
Creation of trust and goodwill – this factor sets the base of a cooperation that
ensures profit. It develops tolerance, intensity of communication and makes works easier to
complete.

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Intense relationship – it is equally important for the allied partners to know each
other properly, in terms of interests, working methods and preferences.
There are many other important criteria including transparent and clear goals, ability
to achieve performance expectations, alignment, compatibility and commitment which
assures that a strategic alliance can fulfil the objectives as well as successfully extinguish all
potential obstacles. All these should be followed whenever they would be necessary globally.

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References
Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An
organization design perspective. Journal of Management, 42(3), 582-614.
Brouthers, K. D., Nakos, G., & Dimitratos, P. (2015). SME entrepreneurial orientation,
international performance, and the moderating role of strategic
alliances. Entrepreneurship Theory and Practice, 39(5), 1161-1187.
Christoffersen, J., Plenborg, T., & Robson, M. J. (2014). Measures of strategic alliance
performance, classified and assessed. International Business Review, 23(3), 479-489.
Ozmel, U., Robinson, D. T., & Stuart, T. E. (2013). Strategic alliances, venture capital, and
exit decisions in early stage high-tech firms. Journal of Financial Economics, 107(3),
655-670.