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In business, innovation can be defined as the exploitation of new ideas that find acceptance in the market. These ideas, most often, are incorporated into new processes, technology, best practices and designs (Sarkar 2007, p.2). Some of these ideas may end up causing a complete overhaul to an organization’s operation and range of products.
Most of the innovated products are based on the ideas of others or a modification of existing products. In summary, innovation process encompasses; getting a new idea or modifying an old one, reorganization of existing opportunities or those that can be promoted, choice of best alternatives and application of the process and the idea (Sarkar 2007, p.2). Innovation may be as a result of the need to meet the needs of consumers or improve the way of doing things. Companies that fail to embrace innovation have often found themselves left behind by their competitors, leading to the loss of their market niche.
The focus on the theories of innovation varies because there are different views on the process of innovation and the factors that lead to the development of innovation. The theories may focus on; (a) technological development, R&D and technical research functions in a company, (b) the individual who creates and develops the new elements, and (c) issues of innovation in the market place (Sundo 1998, p.4).
It involves the exchange of technology between two or more companies. Strategic alliances are characterized by risk sharing and mutual commitment in respect to the attainment of specified economic and technological goals and objectives. These alliances tend to arise from the willingness and desire of one firm to assist the other in overall development of the firm business and/or exploitation of certain technological assets portfolio.
An example is when the firms in the alliance want to (a) form a joint venture in research and distribution, or (b) enter a joint development agreement, or (c) enter
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(INNOVATION (Strategic Alliances) Essay Example | Topics and Well Written Essays - 2000 Words)
“INNOVATION (Strategic Alliances) Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/miscellaneous/1572299-innovation-strategic-alliances.
Companies that were market leaders in the segment have been losing market share year on year over other players. (Appendix 1) Technology is the major driving force of this segment. Products that are introduced in the market become outdated within no time as the competitors will launch a better product equipped with advanced technology at a competitive price.
The parties always come together to use these alliances to attain some strategic business ends which often look very good on paper. However, most of them have proven to be unsuccessful. Many of these alliances end up in conflicts which lead to the collapse of these positive looking ventures.
A globalization market entry strategy that has become very popular to gain access to foreign markets is strategic alliances. A strategic alliance can be defined as an arrangement between two companies that have decided to share resources in a particular project (Answers, 2011).
The result of this rise in this phenomenon has prompted researchers and organizational scientists to focus on this field more than ever before. As a result of research work done in this field, there are plenty of other avenues opening up. The impact of Strategic Alliance have also been studied in great detail and many scholars and researchers have linked it up with economics of returns, economies of scales, R & D and many other fields that have forward and backward linkages to an organization.
A strategic issue is “an emerging development which, in the judgment of some strategic decision makers, is likely to have a significant impact on the organization’s present or future strategies” (Dessy, 2010). Although, decision makers make rigorous attempts to respond to these changes, companies constantly face various challenges with regard to different issues pertaining to the external and internal environment of the firm.
The growth of the pharmaceuticals, which in turn lead to the emergence of biotechnology industry, provides valuable insight regarding the role of networking and alliance that changed the shape of both the industries. Many of the biotechnology industry analysts has devoted time and effort for evaluating the alliances of the individual firms and assigning market values to them based on the quantity and quality of the relationships (Powell, Koput and Smith-Doerr, 1966; Powell, 1998).
While both the supplier and the buyer gain from such alliances, mutual trust and a long-term commitment is essential for the success of such alliances. Attitude and culture change are essential for the success of such partnerships. Supply
The paper intends to discuss strategic alliance, its pros and cons, the various factors and aspects, involvement of risk, the different stages of strategic alliance development with respect to in–general business
This is because, according to DoT, the establishment and development of such a sensitive installation does not deserve outsourced manpower, considering that outsourcing the manpower will open more avenues
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