Strategic Alliance of Uber and Spotify.pptx

Presentation

1. Strategic Alliance of Uber and Spotify Presented By: Om and Pranav

2. What is Strategic Alliance? A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. Strategic alliances, also known as  strategic partnerships , are long-term, multi-department commitments with clearly defined goals for both companies.

3. Types of Strategic Alliances: Joint Venture: A joint venture is a child company of two parent companies. It’s maintained by sharing resources and equity with a binding agreement. Whether it’s formed for a specific purpose or an ongoing strategy, a joint venture has a clear objective, and profits are split between the two companies. Equity Strategic Alliance: An equity strategic alliance occurs when one company purchases equity in another business (partial acquisition), or each business purchases equity in each other (cross-equity transactions). Non – Equity Strategic Alliance: In a non-equity strategic alliance, organizations create an agreement to share resources without creating a separate entity or sharing equity. Non-equity alliances are often more loose and informal than a partnership involving equity. These make up the vast majority of business alliances.

4. Uber and Spotify: Uber’s partnership with Spotify lets Uber riders easily stream their Spotify playlists whenever they take a ride. This makes the Uber experience feel more personalized, and encourages Uber riders to subscribe to Spotify Premium (for more control of their tunes both inside and outside Uber). Uber’s rivals don’t have a similar personalized music experience, so this gives the rideshare giant a competitive advantage over Lyft and other similar services. And since not all Uber riders have Spotify, and not all Spotify users ride with Uber, both brands gain access to new, broad audiences in this business alliance.

5. Thank You…