In the strategic alliance of product chain, the cost reduction, limiting the risk, accelerating the sales speed, expansion of competition opportunities, building flexibility and weakening of strengths of rival enterprises etc. can be carried out part-by-part.
However, this type of alliance is insufficient for assuring the pre-dominance of the competitive strength on a continuous basis. This is because of the fact that the pre-dominance is acquired on the basis of easily transferable information resources. Therefore, the pre-dominance of competitive strength which is gained through this type of alliance is gained through this type of alliance is of fragile nature and it can be lost very soon.
On the other hand, the competitive pre-dominance which is generated on the basis of difficult to transfer information resources through strategic alliance of knowledge chain is of a very strong nature. It is not very easy for any rival company to acquire the same pre-dominance state continuously.
The information resources which are difficult to transfer are different from the information resources which are easy to transfer and these can be obtained only through a cordial and cooperative working between the two organisations. The degree of originality is very high. Therefore, it forms the basis which generate continuous competitive pre-dominance as against the other companies or groups.
However, this type of alliance is insufficient for assuring the pre-dominance of the competitive strength on a continuous basis. This is because of the fact that the pre-dominance is acquired on the basis of easily transferable information resources. Therefore, the pre-dominance of competitive strength which is gained through this type of alliance is gained through this type of alliance is of fragile nature and it can be lost very soon.
On the other hand, the competitive pre-dominance which is generated on the basis of difficult to transfer information resources through strategic alliance of knowledge chain is of a very strong nature. It is not very easy for any rival company to acquire the same pre-dominance state continuously.
The information resources which are difficult to transfer are different from the information resources which are easy to transfer and these can be obtained only through a cordial and cooperative working between the two organisations. The degree of originality is very high. Therefore, it forms the basis which generate continuous competitive pre-dominance as against the other companies or groups.