Gaining Competitive Advantage Through Strategic Partnerships in the Supply Chain
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Sprache:Englisch
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Erscheinungsdatum
19.03.2008
Verlag
GRINSeitenzahl
19 (Printausgabe)
Dateigröße
403 KB
Auflage
1. Auflage
Sprache
Englisch
EAN
9783638025959
Seminar paper from the year 2006 in the subject Business economics - General, grade: 1,4, European Business School - International University Schloss Reichartshausen Oestrich-Winkel, language: English, abstract: 1. INTRODUCTION
1.1 NATURE OF THE PROBLEM AND OBJECTIVE
Due to the impact of globalization on our economy and the growing dynamic of markets,
competition between companies has changed over the last decades. Shorter product
life cycles, the pressure on prices, or the high costs of research and development for
better products have made it difficult for today's companies to prevail against their
competitors in the contest for profits. But also the challenge to meet the high levels of
customers' quality and service demand has weakened a company's ability to differentiate
itself from its competitors. Especially small and medium-sized enterprises have to
face this problem when competing against bigger companies. Thus, these facts contribute
to the implication of finding new and alternative ways of gaining a strategic and
competitive advantage.
One measure of doing so is to establish so called strategic partnerships, by leaving the
stage of company-versus-company competition. By this means, the partners use synergy
effects and bundle their strengths to aim for growth and profit enhancement. Such strategic
partnerships have become very popular over the last years. This form of collaboration
is used in particular by large multinational firms to develop new products and services,
and to enter new markets.
Even though strategic partnerships are strongly increasing in number, approximately 50-
60% of them fail in achieving their original goals. Therefore, it is important to analyze
what strategic partnerships are, how they work and whether they are more suitable for
some areas than for others. The goal of this seminar paper is to discuss to which extent
strategic partnerships can help companies to gain a strategic advantage in the supply
chain. I will thereby focus on two points: Firstly, which are the areas most applicable
for strategic alliances? And secondly, what are the decisive parameters a company has
to take into account when building a strategic partnership?
1.1 NATURE OF THE PROBLEM AND OBJECTIVE
Due to the impact of globalization on our economy and the growing dynamic of markets,
competition between companies has changed over the last decades. Shorter product
life cycles, the pressure on prices, or the high costs of research and development for
better products have made it difficult for today's companies to prevail against their
competitors in the contest for profits. But also the challenge to meet the high levels of
customers' quality and service demand has weakened a company's ability to differentiate
itself from its competitors. Especially small and medium-sized enterprises have to
face this problem when competing against bigger companies. Thus, these facts contribute
to the implication of finding new and alternative ways of gaining a strategic and
competitive advantage.
One measure of doing so is to establish so called strategic partnerships, by leaving the
stage of company-versus-company competition. By this means, the partners use synergy
effects and bundle their strengths to aim for growth and profit enhancement. Such strategic
partnerships have become very popular over the last years. This form of collaboration
is used in particular by large multinational firms to develop new products and services,
and to enter new markets.
Even though strategic partnerships are strongly increasing in number, approximately 50-
60% of them fail in achieving their original goals. Therefore, it is important to analyze
what strategic partnerships are, how they work and whether they are more suitable for
some areas than for others. The goal of this seminar paper is to discuss to which extent
strategic partnerships can help companies to gain a strategic advantage in the supply
chain. I will thereby focus on two points: Firstly, which are the areas most applicable
for strategic alliances? And secondly, what are the decisive parameters a company has
to take into account when building a strategic partnership?
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