Strategic Alliance

The presentation is on the topic of Strategic Alliance and involves all of it's theoretical concept as well as case study of the alliance between Vodafone and Paytm in India. I choose a theme with vibrant colours because it helps in grasping the audiences attention as well keeping their focus on the topic at hand.

Transcript

1. STRATEGIC ALLIANCE Case study: Vodafone & ICICI Bank Author: Parikshit Arvind Tiwari
3. WHAT IS STRATEGIC ALLIANCE? Strategic Alliance refers to the agreement between two or more firms that unite to pursue a common set of goals but remain independent after the formation of the alliance. In other words, when two companies come together to achieve a common objective by sharing their particular strengths (resources) with each other is called as a strategic alliance.
4. UNDERSTAND STRATEGIC ALLIANCE Responsibilities are defined strategic alliance can be a informal alliance but the responsibilities of each member are clearly defined. Develop effective process A strategic alliance agreement could help a company develop a more effective process compared to being alone. Common goals Strategic alliances allow two organizations, individuals or other entities to work toward common or correlating goals. 01 02 03 Resources are shared It is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. 04
5. Types of strategic alliance 2: Equity An equity strategic alliance is when one company purchases a certain equity percentage of the other company. 3: Non-equity It is created when two or more companies sign a contractual relationship to pool their resources and capabilities together. 1: Joint When two parent companies come together to establish a child company to achieve a common objective,
6. ADVANTAGES OF STRATEGIC ALLIANCE Sharing resources and expertise 01 Penetration of new and emerging markets 02 Expanded production and capability 03 Driving innovation and efficiency 04
7. DISADVANTAGES OF STRATEGIC ALLIANCE Possibility of good employees to cross-over 01 Conflicts in ownership claims 02 Clash of Cultures 03 Risk of delay in implementing 04
8. STRATEGY FIRST KEEP TRACK PLAN THE END BUILD TRUST START SMALL ENTERPRISE-WIDE CAPABILITY SUCCESS FACTORS OF STRATEGIC ALLIANCE
9. THE STRATEGIST: VODAFONE & ICICI BANK ICICI BANK • Established in 1994 in Vadodara • One of the big four banks in India • India's largest public sector bank. • Total assets worth 13.77 lakh crores • Present in over 19 countries VODAFONE • British multinational telecom founded in 1984 • One of the leading telecommunications company in the world • Net worth of 60,000 crores • Present in over 21 countries • Currently merged with Idea to form a new lega entity Vi
10. THE ALLAINCE: M-PESA • Launched in November 2012 through Mobile Commerce Solutions Ltd. and ICICI Bank • Unique mobile money transfer and payment service • M-Pesa was shut down from 15 July 2019 due to regulatory curbs and stress in the sector • Cash deposit and withdrawal from designated outlets • Money transfer to any mobile phone in India • Range of mobile payment services including purchase of mobile recharge, recharge of DTH services and utility bill payments • Money transfer to any bank account in India • Payments at select shops Services include:
11. WHAT WAS ENVISIONED? With the launch of 'M-Pesa', the Bank now offers a unique and innovative service that provides basic banking facilities to millions of Indians. We are very happy with the partnership with Vodafone as the tie-up will effectively leverage the security of financial transactions provided to customers by ICICI Bank and the strengths of Vodafone's significant distribution reach. This launch is line with the Bank's objective of achieving greater financial inclusion. Rajiv Sabarval, Executive Director ICICI Bank Using 'M-Pesa', we will provide people in remote areas a convenient way to bank, transfer money and make payments in a safe and secure manner. We have customized our offering to serve the needs of Indian customers while ensuring its compliance with all applicable regulations. Financial inclusion is a national priority and we believe that with 'M-Pesa', we now have the ideal offering to enable the same. Marten Pieters, Cheif Executive Director Vodafone India
12. • Setting up 80,000 locations pan India • Targeting the unbanked and underbanked • Strong rural presence • Aggressively targeting mass and social media • Targeting the youth • Reduced transaction fees in comparison to banks M-PESA'S STRATEGY
13. Make in India Gave a huge boost to Paytm and thus harming M-Pesa Governments push over data privacy The government pushed companies to store data in Indian server Paytm's partnership & marketing Paytm partnered with retailers like Amazon and used creative marketing targeting consumers The result: Downfall PAYTM & GOVERNMENT REGULATIONS
14. M-PESA ICICI Bank & Vodafone as well as their mobile banking service alliance M- Pesa FEATURES & TYPES Three types i.e. joint, equity and non - equity .Also understood its advantages & disadvantages MEANING Between two or more firms with a common goal and shared resources Conclusion STRATEGIC ALLIANCE AND IT'S CASE STUDY JOURNEY OF M- PESA The strategy of M- Pesa and also what went wrong leading towards the limelight being stolen by Paytm
15. References: https://www.investopedia.com/terms/s/strategicalliance.asp#:~:text=A%20strategi c%20 alliance%20is%20an,create%20a%20separate%20business%20entity 2. https://www.workspan.com/blog/strategic-alliance-definition/ 3.https://www.researchgate.net/publication/235355753_Determining_Factors_in_t he_Success_of_Strategic_Alliances_An_Empirical_Study_Performed_in_Portugu ese_Firms#:~:t ext=The%20most%20outstanding%20factors%20affecting,and%20clear%20obje ctives%20and%20strategy 4. https://www.icicibank.com/aboutus/article.page?identifier=news-icici-bank- andvodafone-india-launch-mpesa-20131812144522456