Alliances between product software firms
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Exploring the industrial environment can help with forming an alliance-based strategy (see also marketing strategies for product software). For the software product companies, common strategic alliance formations (see also business alliance) are research partnerships, joint product development, technology licensing, and marketing and distribution agreements (Rao & Klein, 1994). Additionally, working with other firms to produce complementary products is worthwhile for many companies since it can increase the value of the original product (Messerschmitt & Szyperski, 2004). Alliances can also be beneficial for marketing actions. Usually new and established firm form relationships because while the new firms have innovative products, they usually lack the funds to make large investments in marketing assets that are necessary to gain large amounts of sales (Rao & Klein, 2004). Alliances can be a great help for supporting growth of sales in other countries. Strategic alliances with foreign companies can help enhance advertising effects, improve development of products to match the foreign users’ needs, and help increase collaboration with large customers (Igel & Islam, 2001). By knowing what other firms are in your industry, it can help with the creation and maintenance of relationship with them that can enhance the profits of both companies.
[edit] References
- Igel, B., and N. Islam. “Strategies for service and market development of entrepreneurial software designing firms.” Technovation , Volume: 21, Issue: 3 (March 2001), pp: 157-166
- Rao, P.M., and J. A. Klein. “Growing importance of marketing strategies for the software industry” Industrial marketing management, Volume: 23, Issue: 1 (February 1994), pp: 29-37
- Trondsen, T. J. “Some Characteristics of Adopters of a Major Innovation in the Computer Field and Its Potential Use in Marketing.” Industrial Marketing Management Volume: 25 Issue: 6 (November 1996), pp: 567-576
