Uber and Spotify Strategic Alliance (Essay Sample)
Management Question
Learning Outcomes:
1. Distinguish between different types and levels of strategy and strategy implementation (Lo.3)
2. Gain insights into the strategy-making processes of different types of organizations (Lo.4)
3. Understand issues related to strategic competitive advantage in diversified organizations (Lo.6)
Assignment No 3
Learning Outcomes:
1. Distinguish between different types and levels of strategy and strategy implementation (Lo.3)
2. Gain insights into the strategy-making processes of different types of organizations (Lo.4)
3. Understand issues related to strategic competitive advantage in diversified organizations (Lo.6)
From real national/international market, select any type of strategic alliance between two firms and answer the following questions:
1. Briefly introduce your chosen firms, partners of the strategic alliance (industry, nationality, size,market position…). (1Mark)- Max 150 words
2. What is the type of strategic alliance used byyour chosen firms? Explain its different reasons. (1Mark)
3. What is the method used by the firms to manage their cultures after alliance? underline the pros and cons of this method.(1Mark)
4. Is this strategic alliance successful? Justify. (1 Mark)
5. What recommendations can you give for the managers of these firms to improve their competitiveness?(1 mark)
Note. All references used should be listed by the end of your analysis, using the APA style.
Uber and Spotify Strategic Alliance
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Uber and Spotify Strategic Alliance
Question 1: Uber and Spotify
The firms with a strategic alliance include Spotify and Uber. Uber is an American mobility firm based in San Fransisco, California, with operations in more than 900 metropolitan areas globally. Uber has an estimated market share of 69 percent as of July 2021 (Iqbal, 2021). Spotify is a company based in Stockholm, Sweden, focusing on audio streaming and media services. It provides the largest music streaming service with market size of 33.9% in the music streaming space (Iqbal, 2021). It has about 165 million subscribers among 487 million people that have a music streaming subscription. The strategic coordinating among Spotify and Uber is a specific kind of relationship with real affiliation. An essential affiliation is an amicable association between two organizations that build up an ideal environment ideally. Key assistants are, for the most part, non-battling associations and, now and again, share both the risks and grants of the decisions of the two associations.
Question 2: Non-equity Strategic Alliance
The two companies have a non-equity strategic alliance. These companies only came into a contractual agreement to pull their resources and capabilities in unison (Shontell, 2020). Every company had an existing system that would ally a success. Uber provides Spotify with a platform to access its customers, while Spotify provides the same to Uber. Spotify customers may
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