Sunspot Inc Case Study
Case Study # 1 – Sunspot Inc.
1. What are the most likely benefits of forming strategic supply alliances with Sunspot’s key suppliers?
I believe that it is important to realize that a strategic alliance or partnership is solely depended on trust and faith in the relationship between all involved in simultaneous stages should not change or use those stages for their own advantage without consideration of the organization involved. Some of the advantages would be:
- Developing competences and learning form the partners
- Suitability and protection of resources is maintained
- Developing low cost models hence financial benefit
- Each partner can concentrate on different stages of the supply
2. What are the disadvantages or risks of such alliances?
There are some disadvantages in forming strategic supply alliances, for example, the partners must share resources and profits and often skill. This can be critical if business secrets are included in this knowledge. Also, the companies involved may become a competitor one day, if they profited enough from the alliance and grew enough to end the partnership and are able to operate on their own in the same market. There is also the risk that the alliance is uneven, meaning that the decision powers are distributed very uneven, the weaker partner might be forced to act according to the will of the more powerful partners even if it is actually not willing to do so.
3. How can these disadvantages be offset?
In order to offset some of the disadvantages of a strategic alliance, the legal form and contractual terms of need to be carefully thought out and drafted so as to ensure that the intended benefits of the alliance can be achieved without any unforeseen negative consequences. For a limited strategic alliance involving access to a distribution network, for example, the agreement might take the form of a contract without the need to set up a separate vehicle to carry out the agreed actions. If Sunspot Inc. and its
1. What are the most likely benefits of forming strategic supply alliances with Sunspot’s key suppliers?
I believe that it is important to realize that a strategic alliance or partnership is solely depended on trust and faith in the relationship between all involved in simultaneous stages should not change or use those stages for their own advantage without consideration of the organization involved. Some of the advantages would be:
- Developing competences and learning form the partners
- Suitability and protection of resources is maintained
- Developing low cost models hence financial benefit
- Each partner can concentrate on different stages of the supply
2. What are the disadvantages or risks of such alliances?
There are some disadvantages in forming strategic supply alliances, for example, the partners must share resources and profits and often skill. This can be critical if business secrets are included in this knowledge. Also, the companies involved may become a competitor one day, if they profited enough from the alliance and grew enough to end the partnership and are able to operate on their own in the same market. There is also the risk that the alliance is uneven, meaning that the decision powers are distributed very uneven, the weaker partner might be forced to act according to the will of the more powerful partners even if it is actually not willing to do so.
3. How can these disadvantages be offset?
In order to offset some of the disadvantages of a strategic alliance, the legal form and contractual terms of need to be carefully thought out and drafted so as to ensure that the intended benefits of the alliance can be achieved without any unforeseen negative consequences. For a limited strategic alliance involving access to a distribution network, for example, the agreement might take the form of a contract without the need to set up a separate vehicle to carry out the agreed actions. If Sunspot Inc. and its