Strategy Alliance: An Approach To Business Growth And Stability

Otiwa, James Obriku
Jimotiwa@gmail.com
Department of Business Management
Faculty of Management Sciences
University of Calabar

Abstract
Firms are not always in competition sometimes, they cooperate with each other to circumvent the
growing complexity of business environments. The pulling of resources to synergize may be the way
out for firms with perceived challenges to sell their core competence. The study focused on strategy
alliance as an approach to business growth and stability with reference to Nigerian Breweries Plc. It
is a theoretical research that explored qualitatively the concept of strategy alliance. Data were
sourced from journals articles and company annual reports. The analyses revealed that strategy
alliance is an innovative way for firms to tap into other firms’ technology, managerial competency
and resources. Therefore, strategy alliance provides firms with the opportunity to stay in business,
cut cost and generate revenue for growth and stability. Alliance is healthy for partners as well as the
environment as it minimizes waste and seeks new ways to improve on factor input through research
and development. However, alliance is susceptible to instability and failure if not properly articulated
and implemented. Therefore, managers should not be afraid to create alliances with firms even their
core rivals because such alliance may yield many strategic benefits, expand markets and increase
growth prospects but the choice of strategic partners must be made carefully because it is a major
determinant of stability of the partnership.

Keywords: Strategy alliance, business growth, business stability

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https://afra.org.ng/wp-content/uploads/2022/03/pro2018033.pdf

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