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MGT449 Wk 2 DQ 2

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Q As part of the continuous improvement process, what are some reasons a company would want
to develop a strategic alliance with its supplier?
Ans: Entering into a strategic alliance is most of the times a very successful experience. The
reason behind this is that the resources are doubled and the organizations share with each other
thus aiding each other in various tasks and operations. Organizations may go into strategic
alliance for various purposes like development, penetration in a new market, research,
production, marketing, distribution etc. Mostly entering into strategic alliance is profitable and
enhances the quality of the product, the technology sharing, strategic growth, access and
operations of each other. The strengths together can create miracles and the weaknesses can be
eliminated with one others help. The threats are faced together. The alliance relationship
strengthens and enhances the ability to move ahead, conquer and succeed. This entering into the
strategic alliance could be done individually or as an organization. In actual the alliances support
each other and a high value for different segments of the distribution chain rather than all the
segments is developed. Because of developing a strategic alliance the organizations are only
limited to the quality of the alliance relationships.

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