Strategic Alliances
Strategic alliances are partnerships in which two or more companies work together to achieve objectives that are mutually beneficial. Companies may share resources, information, capabilities and risks to achieve this. A common reason for entering into a strategic alliance is to obtain the advantage of another company's innovations without having to invest in new research and development. While companies have used acquisition to accomplish some of these goals in the past, forming a strategic alliance is more cost-effective.
Successful Alliance:
Starbucks and Barnes & Noble
Coffee shops and bookstores are completely different from one another. They have entirely different markets. Coffee shops sell various caffeinated beverages such as lattes, cappuccinos, and macchiato (as well as various pastries)… and bookstores sell books. So what is it that brought these two big players, Starbucks and Barnes & Noble, together to make such a huge impact on both the book and coffee shop industries?
Fact is, despite all of the differences that bookstores and coffee shops have, they have one essential commonality that bonds them together perfectly, their clientele. The clientele of both of these types of companies have a deep rooted relationship. In many ways, an entire culture that has evolved around the “easy-going” casual bookworm persona and stylish caffeinated drinks. They naturally go hand in hand. Since the partnership of Starbucks’ and Barnes & Noble began in 1993, this trend of book store/coffee house hangout has exploded. And it’s not just limited to those two companies. You see independently owned coffee book stores combo shops popping up in little towns and big cities all over the US. And it’s not uncommon to see universities creating their own knock off version coffee shops in their libraries.
Once Starbucks’ and Barnes & Noble combined efforts, the two companies have evolved and grown like wildfire.
Can you recall a time when you were in a Barnes & Noble that
Successful Alliance:
Starbucks and Barnes & Noble
Coffee shops and bookstores are completely different from one another. They have entirely different markets. Coffee shops sell various caffeinated beverages such as lattes, cappuccinos, and macchiato (as well as various pastries)… and bookstores sell books. So what is it that brought these two big players, Starbucks and Barnes & Noble, together to make such a huge impact on both the book and coffee shop industries?
Fact is, despite all of the differences that bookstores and coffee shops have, they have one essential commonality that bonds them together perfectly, their clientele. The clientele of both of these types of companies have a deep rooted relationship. In many ways, an entire culture that has evolved around the “easy-going” casual bookworm persona and stylish caffeinated drinks. They naturally go hand in hand. Since the partnership of Starbucks’ and Barnes & Noble began in 1993, this trend of book store/coffee house hangout has exploded. And it’s not just limited to those two companies. You see independently owned coffee book stores combo shops popping up in little towns and big cities all over the US. And it’s not uncommon to see universities creating their own knock off version coffee shops in their libraries.
Once Starbucks’ and Barnes & Noble combined efforts, the two companies have evolved and grown like wildfire.
Can you recall a time when you were in a Barnes & Noble that