inter-sectorial strategic alliance

8/9/2019 Inter-sectorial Strategic Alliance

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A strategic Alliance is an agreement for cooperationamong two or more independent rms to worktogether toward common objectives.

Unlike in a joint venture, rms in a strategic alliancedo not form a new entity to further their aims butcollaborate while remaining apart and distinct.


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Intersectorial strategic alliance is the type of strategicalliance which is the collaboration between two ormore rms neither in the same industry nor relatedthrough the vertical chain.

!he is a type of strategic alliance based on theIndustry origin.


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Starbucks

"tarbucks #orporation is an American global co$eecompany and co$eehouse chain based in "eattle,%ashington.

"tarbucks is the largest co$eehouse company in theworld, with &',()* stores in + countries, including *-,&)in the United "tates, *,-& in #anada, )() in /apan, (0* in#hina, and ('+ in the United 1ingdom.

!hrough the "tarbucks 2ntertainment division and 3ear4usic brand, the company also markets books, music, andlm. 4any of the company5s products are seasonal orspecic to the locality of the store. "tarbucksbrand icecream and co$ee are also o$ered at grocery stores.


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6rom "tarbucks5 founding in *)* as a "eattle co$ee beanroaster and retailer, the company has e7panded rapidly."ince *)(, "tarbucks has opened on average two newstores every day

"tarbucks had been protable as a local company in "eattlein the early *)('s but lost money on its late *)('se7pansion into the 4idwest and 8ritish #olumbia. Itsfortunes did not reverse until the scal year of *)()*))',when it registered a small prot of 9(*&,'''

8y the time it e7panded into #alifornia in *))* it hadbecome trendy. !he rst store outside the United "tates or#anada opened in !okyo in *))+, and overseas stores nowconstitute almost one third of "tarbucks5 stores.


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Kraft Foods Group

An American grocery manufacturing and processingconglomerate head:uartered in the #hicago suburb of;ortheld, Illinois.

!he company was formed in &'*& by a demerger from1raft 6oods Inc., which in turn was renamed 4ondelroup is a ;orth American grocery

business, while 4ondelroup is an independent public company


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"tarbucks has relied on a strategic alliance with 1raftfoods since *))( to get its packaged co$ee products

onto grocery store shelves

"tarbucks? turnover continued to grow from 0' millionto 0'' million after their cooperation.

"tarbucks needs 1raft?s distribution infrastructure ande7pertise.


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1raft beneted from the retail packaged co$eeproducts.


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"tarbucks thinks 1raft has been @failing to properly marketpackagedco$ee products.

"tarbucks accused 1raft of @bungling sales of its packaged

co$ee in grocery stores .

"tarbucks accused 1raftBCf shutting its e7ecutives out of sales meetings.Using knowledge gained from their relationship to launch

its

own co$ee brand and damaging "tarbucks5simage.


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"tarbucks intended to go it alone and terminate theiragreement with 1raft as soon as possible.

"tarbucks wanted greater De7ibility to sell the single

serve co$ee pods that were taking o$ in the market atthe time.

"tarbucks believe 1raft did not deliver on itsresponsibilities to our brand under the agreement

!o mark a new era for the company. !he company hassaid those sales are ahead of e7pectations


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3ad diEculties in retailing its packed co$ee.

Fis not have its own distribution infrastructure for

reaching the retail grocery store.

3ad to pay 9&.billion for disputing the deal with1raft


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"tarbucks now markets its packaged products throughprivatelyowned marketing rm Acosta.

"et up an internal strategic marketing team. !his willallow "tarbucks to have a proactive feedback ofcustomer satisfaction and hence faster improvement.

Invest more on the other distribution channel

inter-sectorial strategic alliance

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