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Issue: Evaluate the decision to enter a strategic alliance from the perspective of both LA and BLS. What are the real opportunities and risks of this approach? Assume that the partnership is successful. What new strategic capabilities will it provide for both companies? Evaluation of the strategic alliance: On the one hand, the prospective alliance will help to increase LA’s supply chain efficiency (move away from vertical integration) and it allows that both companies can better focus on their core competencies in order to maintain competitive advantage: In 1970, LA became backwardly and forwardly vertically integrated – everything from the supplying of materials and manufacturing to distribution and retail. The main benefits of this throughout the organisation's development included greater control, greater ability to differentiate, the opportunity to achieve economies of scale (higher margins), assurance of supply and greater synergy.
Approximate Word count = 541
Approximate Pages = 2.2
(250 words per page double spaced)
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