This strategic alliance between Billabong and Nivea will bring and contribute a distinctive capability in a particular value adding activity (Lei and Slocum, 1992), and it will also help both organizations to identify a collaborative relationship (Cravens, 2001). With that new alliance, Nivea and Billabong will be able to help each other in promoting a product with a
more innovative packaging and communication adapted to Billabong current consumer of outdoors
activities or not. Billabong will provide his global experience and marketing ‘knowledge on outdoor
activities. To make the product launch a success, Billabong will use his strong brand well-know among
surfers and young population following trends of ‘surf attitude’. Furthermore, that strategy Nivea will
provide the resource and skills to manufacture the new Billabong Sun protector cream; this product
launch is motives by the flexibility and the ease to achieve market access, competence and development
with the support of Nivea (Bengstsson, 1998). Varadarajan and Margaret mention in their research the
possibility to accelerate pace of entry intro a new product-market. In fact, for Billabong it will result with
lower investment risk due to lower manufacturing costs with the support of Nivea and lower marketing
costs with the current resource of Billabong around the world.
Regarding the skills and enhancement-related motives, Billabong will be able to learn new skills from the
new partner Nivea. Varadarajan mention also that enhancement of present skills will happen by working
with alliance partner therefore Nivea and Billabong will both get benefit from this practice.
How to avoid failure in Strategic Alliances
Hart and Garone conducted a re ...