PRESENTATION ESTRATEGIC VERTICAL ALLIANCE

Strategic alliances

Vertical Alliances

ÍNDICE

3. ESTRATEGIC ALLIANCES

10. GRAPHIC IMAGE

11. EXAMPLES

4. DEFINITION

5. TYPES

12. FEATURES

13. FINANCIAL STRUCTURE

6. ADVANTAGES

14. DATA

7. DISADVANTAGES

15. EQUIPO

8. TIPS

16. GRACIAS

9. CONSIDERATIONS

ESTRATEGIC ALLIANCES

By strategic alliance we mean here a formal agreement between two or moreformal agreement between two or more companies to achieve a set of private and common interests based on the sharing of resources in an uncertain interests based on the sharing of resources in a context of uncertainty of results. This definition is comprehensive in that it is applicable to a wide range of collaboration agreements very diverse collaboration agreements.

A vertical strategic alliance is a partnership between a company and its suppliers or distributors. Some companies use vertical alliances to produce their products and services. Vertical alliances deepen the firm's relationship with suppliers through the exchange of know-how and business intelligence. They extend the firm's network and benefit customers with lower prices. Suppliers are actively involved in product design and distribution agreements. The close bond between an automobile manufacturer and its suppliers is an example. A complementary vertical alliance is formed when the supplier agrees to work exclusively for the other.

Full integration produces all the particular inputs required for its processes. Combined integration The company purchases from independent suppliers in addition to its own providers.

VERTICAL ALLIAnces

There are two types of vertical alliances: Backward or upward Forward or top-down

ADVANTAGES

Allows the company to build barriers to new competition. Facilitates investments in specialized assets. That increase the efficiency. Proetects the quality of the producto. Generates an improved schedule.

DISADVANTAGES

Cost disadvantages. Technology change. Uncertainty in the demand. Bureaucratic costs and the limits of vertical integration.

TIPS

By using this alliance, you gain product value and a corporate strategy that generates distinctive ability and competitive advantage.

CONSIDERATIONS

Vertical alliances have higher success rates than horizontal alliances. Although contracts are used to govern vertical alliances, trust between partners makes the alliance more effective. Managing horizontal alliances is more difficult because the partners are often competitors. Companies involved in this type of alliance must be wary of opportunistic behavior. Diagonal strategic alliances are another category of alliances. Unlike horizontal and vertical alliances, diagonal alliances are formed between partners from different industries. Companies seek to create and exploit new or interdisciplinary markets by achieving synergies.

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EXAMPLES

Cooperation between IT companies and banks is an example of this type of alliance.In the automotive sector, component manufacturers work closely with automakers on product development. Caterpillar‘s provision of manufacturing services to Land Rover. Coca-Cola is an example in the case of vertical integration strategies, the company has acquired an important role by buying plants in charge of manufacturing containers and packaging material (backward vertical integration). In this way it achieves such things as reducing production costs by eliminating supplier margins and ensuring continuity of supply and quality of inputs.

FEATURES

A vertical alliance is a partnership that involves collaboration between companies in the same supply chain; for example, a company may partner with its supplier or distributor to reduce risk or obtain lower prices. Vertical alliances benefit partners by deepening the relationship, cementing long-term commitments and enabling collaboration in design and distribution. They are also known as channel partnerships or supply chain partnerships. Antitrust concerns are not as strong in vertical alliances; these partnerships are generally more difficult to analyze to determine if they are anticompetitive, as the partners are not competitors.

FINANCIAL STRUCTURE

This type of strategic alliance involves only the use of assets and other resources of the participants in the development of the activities that are the subject of the contractual agreement, in these cases the participants do not constitute any type of separate entity or financial structure, each of the participants in the strategic alliance independently manages its assets and liabilities and independently records its revenues, costs and expenses.

financial structure

The criteria for the distribution of profits or losses generated by the strategic alliance are usually established in the contractual agreement and the participant is not required to make any adjustments or accounting movements at the level of its consolidated financial statements, This is due to the fact that, as indicated above, the recording of the effects of its participation in the vertical estrategic alliance is recorded only at the level of its individual financial statements.

EQUIPO

LUIS FRANCISCO LUJAN PALACIOSANDRE PALOMINO ORTIZ CHRISTOPHER DAVID ROJAS GONZALES DAZA GAZELEM DELGADO CORDOVA JAZMIN ALEJANDRA PRIETO MARTINEZ

GRACIAS