Archetypes of strategic alliances Sample Clauses

Archetypes of strategic alliances. Regardless of underlying motives, a fundamental concern of each prospective strategic alliance is the question of how much of its resources to put into and retrieve from a strategic alliance (Lorange & Xxxx, 1999). In Ad hoc Pool Type of Strategic Alliance the parent company or institution merely put in a minimum set of resources, often on a temporarily basis by compensating each other, which are ploughed back to the parent in their entirety. In Consortium Types of Strategic Alliances, the parties are willing to put in more resource than in the previous case, but when the value created within the strategic alliance are disbursed back to the partners. An example of this is when two firms are pursuing a common research and development consortium. Kenya Railways and Infraco for instance plan to jointly undertake the design and development project to upgrade and expand commuter rail transport in the city of Nairobi. Project- Based Joint Venture is another type of strategic alliance whereby, the parents put in a minimum of strategic resources, entering an arrangement for jointly creating strategic value through a common organization. The resources generated do not get distributed to the partners except as financial result (Xxxxxxx & Xxxx, 1999). In Full - Blown Joint Ventures, both parties put in resources in abundance, allowing the resources that are generated in the strategic alliance to be retained in the alliances itself (except for divided, royalty fee etc). An example of this is long term competition between partners to develop an entirely new business.
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