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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Strategic Alliance
Yes they can be form the same industry. A good example is seen in airlines cooperating eg British Airways and American. They code share so that you might start your journey with BA then at some point change to an American flight, which also has a BA flight number. When booking you won’t necessarily whose aircraft you will be flying on, but that mightn’t matter. This cooperation can allow the two airlines to present customers with easier seamless access to a huge number of destimations.meaning that customers are better served.
Strategic alliance: see above.
Industry convergence: each industry tends to do more things. For example, travel sites offer flights, hotels car hire, insurance. Mobile phones can act as MP3 players, GPS units, cameras. Usually the convergence means that there are fewer, but larger and more powerful companies.
hello sir,
im quite confused with strategic alliances.
In wikipedia, joint venture is considered as one of the strategic alliances, but some website mentions that JV is not under strategic alliances.
Even in the study guide (kaplan and BPP) put the strategic alliances and JV under different headings, but in Kaplan’s exam kit answer, they put JV under strategic alliances.
Please help me resolved this confusion.
Thank You.
Regards,
niSHina
JVs and strategic alliances are usually treated as being different. In JVs two or more companies set up an jointly owned company (the joint venture) and usually then provide it with money, assets, skill and people.
A strategic alliance is less formal. Think of is as an agreement to cooperate with another company to the mutual benefit of all concerned.
ok, then how about licensing and strategic alliances?
Completely different. Licensing is a commercial arrangement in which you allow another company to use your brand name and manufacturing process in return for a royalty payment.
thanks