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Homework answers / question archive / From real national/international market, select any type of strategic alliance between two firms and answer the following questions: Briefly introduce your chosen firms, partners of alliance (Industry, nationality, size…) What type of strategic alliance that form your selected firms? Explain its different reasons

From real national/international market, select any type of strategic alliance between two firms and answer the following questions: Briefly introduce your chosen firms, partners of alliance (Industry, nationality, size…) What type of strategic alliance that form your selected firms? Explain its different reasons

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From real national/international market, select any type of strategic alliance between two firms and answer the following questions:

  1. Briefly introduce your chosen firms, partners of alliance (Industry, nationality, size…)
  2. What type of strategic alliance that form your selected firms? Explain its different reasons.
  3. Is this alliance successful? Justify.
  4. What is the method used by the firms to manage their cultures after alliance? underline the pros and cons of this method.

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The two firms which I have chosen which have undergone strategic Alliance is uber and spotify. Uber is mobile based application company which can be used by used for booking of taxi services to travel within the city and outside the city. Whereas is Spotify is an mobile based application which can be used by users to listen to music. The industry in which both of these companies operate is mobile based application industry, which provides services for meeting a specific need.
Uber is a company which is based in United States where as Spotify is a company which is based in Sweden. The size of both these companies are uber is a company which has around 27000 employees where does Spotify has around 4500 employees.
This type of strategic Alliance is a global strategic alliance in which both of these companies operate independently and the customers can use both of the services of the companies independently.
Yes, this strategic Alliance has been very successful because with the help of this strategic Alliance the user of Uber can experience personalized streaming services and this in return helps spotify to encourage their uber users to subscribe for the premium services. Because of this strategic Alliance uber has an competitive advantage because none of their competitors have similar such kind of service. This is a strategic Alliance which has also benefited Uber in another way in which the users of Spotify use Uber services, so that they can stream their favorite music in uber.
Both of these companies have their independent cultures of their management and they do not interfere in the operations part of each other. The advantage of this is that both of the companies can operate independently without interfering in the decision making of which gives them freedom to to manage the company's better. The disadvantage of this is, many a times in order to serve the customer better there may be conflict of interest between both of them. For example one company feel that the other company is utilizing there customer base more than the first company. Uber may get a sense of feeling that Spotify is using more of their customer base and in return they are not getting as much as customers from spotify, which can be a cause of potential conflict.

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