Resources of Competition Strength

The reasons for carrying out strategic alliance mentioned so far include the harmonisation of competition, sharing of risk, combining of resources that can be supplemented mutually and to overcome the hindrances against the entry into the new market.

However, the explanation given through the above points, is not sufficient to understand the role of present day strategic alliance. The significance of strategic alliance which are being carried out more frequently today, can be understand clearly by focusing on the information management resources which are very difficult to shift and which can be obtained through co-operative working only.

Even among the management resources, the information management resources that are peculiar to the enterprise forms the basic resource for competitive strength, as explained earlier also. These resources have typical characteristics and these cannot be bought in the market and at the same time it is not very to generate these resources as well. The information resources are generated through the operation activities. These are the invisible assets possessed by the human beings.

The information resources which are generated through strategic alliance form the basis for the pre-dominance of important competitive strength. The joint activity of those who have different values and recognition systems as well as the combination and creation of bond among different sets of knowledge, are the conditions for promotion of innovative activity also. Any enterprise can sustain its competitive strength continuously, if it can generate its pre-dominance in competitive strength vis-a-vis the other company on the basis of such conditions. The other companies cannot easily acquire similar competitive strength. In this way, acquiring of information and knowledge as a management resource that form the origin of competitive strength is very important issue of determining the future development and expansion of any enterprise.

The strategic alliance is being understood by all the enterprises with such background and implications.