"Strategic alliance is a strategic cooperation between two or more organization with the aim to achieve a result, one of the parties cannot (easily) achieve alone". In context of strategic alliance explain the above stat

Strategic alliances are becoming more and more prominent in the global economy. According to Peter F. Drucker, Father of Management Theory stated that the greatest change in corporate culture, and the way business is conducted may be witnessed through the growth of partnership. Strategic alliances produce numerous press releases about companies forming alliances, and also produces several addresses for strategic alliances consulting companies. The number of strategic alliances almost doubled in past 10 years and expected to increase even more in future. Following business objectives are served by strategic alliances: All-in-one solution. Flexibility. Acquisition of new customers. Add strengths, reduce weaknesses. Access to new markets plus technologies. Common sources. Shared risk. In order to illustrate the point an example of strategic alliance between Air India and Lufthansa in India, is illustrated as under: In the context of strategic alliances the goals and objectives adopted by Air India and Lufthansa are: Lufthansa and Air India significantly improved their market leadership positions on India-Europe-USA routes with the Strategic Alliance agreement signed between Lufthansa & Air India. From 1st October 2004, Air India has been a partner of Lufthansa. Within the scope of an extensive agreement covering a far-reaching bilateral cooperation, Wolfgang Mayrhuber, Chairman of the Executive Board of Deutsche Lufthansa AG, and V. Thulasidas, Chairman & Managing Director of Air India, signed a Strategic Alliance agreement in Mumbai. The objective of the partnership was expansion of the offer of flights between Germany and India. All flights between the two countries were operated by the two airlines in code-sharing basis, new routes were added. Through the cooperation in the area of frequent flyer programmes, customers on flights of both airlines can collect and redeem miles for the respective programmes - Miles & More and Flying Returns. Air India has been accorded the IOSA10 Audit Certificate by IATA11 which puts it in the league of a dozen Airlines conforming to quality standards required for joining Global Alliances. India - Germany / Europe and India-USA are very important markets for Air India which it plans to serve over Frankfurt in 10. IOSA (International Civil Aviation Organisation) - A specialized agency of the United Nations whose objective is to develop the principles and techniques of international air navigation. IATA (International Air Transport Association) - A trade association serving airlines, passengers, shippers, travel agents alliance with Lufthansa. In addition to the code-sharing between Germany and India, the code of Air India will also be bookable on Lufthansa connecting flights from Frankfurt to Berlin, Munich, Stuttgart and Düsseldorf to Amsterdam, Geneva, Zurich and Lyon as well as to Washington, Denver, Detroit, Chicago and Los Angeles. This cooperation agreement results from a Memorandum of Understanding which the two carriers signed on 26th August 2003. As per the Memorandum of Understanding, cooperation in the area of sales and marketing is also foreseen as well as cooperation in the medium term in other areas, for example, in the area of IT. Lufthansa which was flying from Frankfurt to Delhi (once daily), Mumbai (once daily), Chennai (once daily) and Bangalore (five times a week) as well as from Munich to Delhi (three times a week) would fly further six weekly flights between Frankfurt and Mumbai as well as three weekly flights between Frankfurt and Delhi which are operated by Air India and can be booked with a Lufthansa code. Air India served up to 33 destinations from Mumbai and Delhi, including, among others, Frankfurt, Chicago and New York. The fleet of Air India consists of 33 wide bodied aircraft and it had planned to add more to make its Los Angeles & Chicago flights daily. It has therefore, Lufthansa- Air India the way for joint-development of air services on India-Europe-USA route. Thus it can be opined that Lufthansa Air India Strategic alliance agreement was one of the crucial ways for developing air services on India-Europe-USA route.