A non-equity strategic alliance is created when two or more firms contract to combine their resources and skills. This may take the shape of a partnership or a joint venture. This kind of non-equity strategic partnership is known as outsourcing (Zafar, 2019). Two or more companies must engage in a legally binding relationship to accomplish it. The article will identify a company and its need to outsource primary support and identify the strategic partner for the support.
One of the Fortune 500 companies that might have to think about outsourcing its manufacturing operations is Apple Inc. Due to the fierce competition, it confronts other manufacturers of smartphones and the need for devices supported by the iOS operating system; Apple must outsource its production to ensure that it can meet the strong demand for its products. In this case, the company would wish to consider forming a non-equity strategic alliance with another company to pool its resources with the other company and boost productivity without making an equity transfer. The agreement will lessen the burden of producing enough products to fulfill demand. Similar to how the other business would earn from its participation in the creation and upkeep of manufacturing facilities, the firm will gain from decreased production costs.
The best partner for apple iOS is Salesforce’s CRM, a plan to develop innovative commercial mobile applications. Salesforce will revamp its app in collaboration with Apple to better use iOS’s native mobile platform. Moreover, a new Salesforce Mobile SDK for iOS and an iOS App Development course on Salesforce’s online learning platform, Trailhead, will be made available to Salesforce developers so that they may create their native applications.
Reference
Zafar, A. (2019). The outsourcing innovation paradox: a company’s growth option or a risk to R&D capabilities.