Business, Research Paper Example | Topics and Well Written Essays - 1750 words

Business, - Research Paper Example In this regard supply chain management has a key role to play in the success of companies with aspects like outsourcing being on the rise. The present study would analyze the aspect of vertical integration versus strategic alliances as a possible supply chain management strategy of firms engaged in the aerospace and defense industry competing in the international markets in a globalised market environment. Business level co-operative strategy In general terms, strategic alliances can be defined as co-operative agreement and arrangements between the two or more partners, and hence, the co-operative relationship management is one of the prime requirements in strategic alliances. The strategies aims to meet this requirement are known as the business level co-operative strategies. Co-operation is one of the basic attributes of the strategic alliances and the partners must have a clear understanding of this attribute for framing a set of business level co-operative strategy. Kwok and Hamp son have identified the very specific parameters to measure and frame the co-operative strategies in case of strategic alliances. ... oss border strategic alliance The need for greater consolidation within the highly capital intensive aerospace and defense industry segment has paved the way for greater alliance and collaboration among various organizations for an effective supply chain management. The need to develop high end research has also promulgated the need to have greater strategic alliances with international partners. For example the NATO partners are actively trying to enter into greater collaborations and strategic alliances with the US and European companies in a bid to improve upon the efficiency of the companies (Lorell et.al, â€Å"Implications of European Consolidation and Increased Aerospace Globalization†). Strategic alliances also help in developing a greater synergistic association between the companies and the civil sector. The example of the modern air fighter Euro fighter Typhoon is a good example in which five European nations namely Germany, UK, Spain and Italian companies went into a strategic alliance to create a world class fighter aircraft. Another such example involves the case of EUROFLAG consortium in which five European national companies have entered into a strategic alliance to manufacture fifth generation fighter aircrafts. However the aspect of cross border alliances also involve certain hindrances mainly in the form of government contracts and regulations, arms policies and export rules of different nations, disparities in the requirements and finally the absence of multinational legal structure across various nations etc that can have serious implications on the development of cross border strategic alliances between players in the aerospace and defense industry (Commission of the European Communities, â€Å"Cross Border Industrial Integration†). Vertical