Strategic alliance: Avebe and Noveon
Summary :
Table of Contents
- Introduction.
- Strategic alliances create value by exploiting opportunities.
- The advantages and disadvantages of alliances over internal development.
- The disadvantages of strategic alliances.
- Avebe and Noveon.
- Conclusion.
- Bibliography.
Abstract
Gulati(1998) defines strategic alliance as "voluntary arrangements between firms involving exchange, sharing, or co- development of products, technologies or services".
According to Granell (2000) globalization has become a world-wide pressure for companies to change and it is also seen as one of the most frequent external and significant trends for companies. All around the world, the current trend is that companies attract foreign investment and still increase exports and build on international alliances.
After reading the case study, the alliance formed by avebe and Noveocan can be identified as joint venture alliance. Both the companies did not hold any equity or holdings in each other's company. They both had formed an alliance to produce a high quality product at a reasonable price and the joint venture alliance was determined by set of clauses in the contract.
According to Granell (2000) globalization has become a world-wide pressure for companies to change and it is also seen as one of the most frequent external and significant trends for companies. All around the world, the current trend is that companies attract foreign investment and still increase exports and build on international alliances.
After reading the case study, the alliance formed by avebe and Noveocan can be identified as joint venture alliance. Both the companies did not hold any equity or holdings in each other's company. They both had formed an alliance to produce a high quality product at a reasonable price and the joint venture alliance was determined by set of clauses in the contract.
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