Strategic Alliances: Collaboration, Benefits, and Supply Chain

This essay discusses the positive outcomes of active engagement and effective collaborative arrangements like strategic alliances in today's business environment. Strategic alliances, partnerships between firms to achieve mutual goals, offer benefits such as gaining technology advantages, accessing new markets, reducing financial threats, and attaining competitive advantages. Suppliers are often chosen as strategic alliances to enhance production and manufacturing processes. Supply chain alliances involve independent entities working together to improve supportive nature, solve rival conflicts, explore new learnings, create new products, and manage market risk. Global supply chains, facilitated by strategic alliances with international firms, provide access to new markets and advanced technology, connecting people across boundaries and impacting international production and social connections. The essay also touches upon the ethical challenges arising from global production, such as labor issues in developing countries.

As per Todeva and Knokw (2005), number of positive results can be generated with the help of
active engagement which can start from acquisition of materials up to formation of synergies. In
order to remain sustainable in present business environment, firm is in need of effective
collaborative patterns just like strategy alliances which helps in offering efficiency, improve market
position, helps in exploring new market and other important resources Kale and Singh,2009.
Strategic alliances is actually collaboration of two firms that agrees to work together to achieve
common goal which can offer them great benefits. The motive behind alliances is to gain technology
advantage, entry to new market, lower financial threats, attain competitive advantage over other
rivals (Wheelen and Hunger, 2000). In many cases, suppliers are chosen as strategic alliances by
companies in order to gain advantage in their production and manufacturing process. It is
considered as operative mean to attain access to advance technology, access to new market so that
government barrier can be jumped off in order to offer quick leading position to the firm in their
particular industry.
While taken a supply chain alliance which involves various self-governing entities to attain goal in
existing business environment. This kind of alliances helps in offering benefits of improving
supportive nature and solve rival conflicts, helps in exploring new learnings, helps in creating new
products, handling instability along with market risk. Supply chain structure of organization is
represented by Figure 1
Global supply chain aids in offering access in to new market, helps in expanding business by
providing organization advance technology with the help of strategic alliances with international
firms. It is not just mean a device which helps in trading economic goods and movement of currency
across boundaries. But they also interlink the people across boundaries on the base of social and
cultural base by developing new web of relations in the form of social platform. It has not only alter
the pattern of international production but also universe of social connection within the people. With
the help of globalization in production, chocolate lovers, style lover present in the UK can be
connected with the fashion workers of Bangladesh or Cocoa cultivators in Ghana. Possibilities are
they may be annoyed in the form of sweatshop or child labour along with challenges which arise in
retails buying practices linked to providers in developing countries