Problems of Strategic Alliance and its Management

Problems of strategic alliance is accompanied by a problem which is different from that of a single organisation. The probability of occurring of such a problem becomes inevitable when two different and independent organisations work together.

The difference of opinion occurs very often due to various reasons like difference in cognizance, difference of values, difference in aims and difference in alliance resources. These types of differences become important factors for the triggering of innovation. However, the strong motivation for promoting such transactions that are beneficial to one part alone may end up in damaging the relationship of trust. It is possible that the fruits of alliance cannot be materialised in the event of lack of strong relationship and it is also possible that the strategic alliance partners may turn rivals in future.

The strategic alliance which has such types of problems requires relationship, trust and devotion, in particular. The following nine pints can be listed as the conditions for the strategic alliance.

· To have a clear understanding about the present and future capability requirement for one’s company (there are many cases when company’s jump over to grab any opportunity to meet the immediate needs, in actual practice).
· To study the alliance which has the possibility of covering a very wide scope.
· To seriously study the capability, zeal and values of the other party before entering into alliance relationship. It is necessary to understand the actual state of affairs of the other party.
· To consider beforehand, the risk of knowledge getting stereo typed, disclosure of knowledge and optimism etc. The two partners will have to harmonise and cooperate with each other, while they complete with each other at the same time.
· To avoid over dependence. It must be kept in mind that the alliance is not an alternative method to the development from inside. It should act to supplement the information resources of one’s company or improving upon them.
· The alliance of enterprise must be constructed managed in the form of an independent enterprise.
· The partners should have complete mutual trust. Trust and liberal communication are indispensable for the success of any alliance.
· The core type activity and the traditional organisation of one’s company must be modified so that the results achieved as a consequence of alliance are received with flexible mind.
· It is the responsibility of the leader to clearly communicate the purpose, importance and reasonability of the alliance through his or her speech and conduct. It is necessary that the leader must set a model example concerning the devotion, patience and flexibility.

As the enterprises adopt strategic alliance more frequently with an aim of acquiring and learning the knowledge, the management of overall alliance patter will gain importance over the individual alliance management. And with the progress in the process of forming alliance the significance of contribution of individual alliances to the strategy and basic purpose of enterprise will become less important. Rather, it will become necessary to study how various alliances affect the growth of the enterprises.

In this world of knowledge leadership based competition, the pre-dominance on the basis of the product is no longer a continuous possession. The knowledge which is difficult to transfer alone has become the real and basic asset for an enterprise.

However, the information resources which have higher degree of independence and are difficult to transfer also have some peculiar problems attached to them. The typical characteristic features like non-general purpose utility and fixed types etc of such information resources normally lead to loss of sensitivity, flexibility in behaviour and maneuverability towards the changes in the environment of the organization.