Please read the below discussion and provide response in 50 to 75 words:

It’s an agreement or mutual understanding between two companies to get beneficial from a project by retaining their own individuality. It helps both of the companies to expand their brand/share value in the market (Kenton, 2019). This helps their business grow more rapidly than acting alone in the market.

Recently we know Uber and Spotify came together with their strategic alliance into the market. This strategic alliance helped each organization to pursue prospects from each of their own costumers. This companies already proved to be more successful in terms of modern and digitalized (D & K, 2019). With their technological services Spotify encouraged their premium customers to use Uber than regular taxis. They also promoted saying personalization of ride can be easily done with Uber. On other hands Uber encouraged their customers/users with special promotions for Spotify premium plans (D & K, 2019). This helped the customers/users to use their services at once rather using them separately. With this strategic initiative both organizations were reached to various audience, with increase of brand value, awareness and recognition. The reason I feel why this two companies came together because Uber can provide their customers a good music, which attracted more customers to Uber which parallel increased the count of premium customers in Spotify. Which also provided a lot of advantages for Uber and Spotify in terms of service and expectation of customers. I feel it as win-win strategic partnership.

Not only advantage’s it also has few disadvantages with this initiative, were Uber drivers refused customers to play their own playlist while using the services. Spotify users (not premium) were not allowed to personalize their Uber ride, as every user are not afforded to pay for premium Spotify plan.

I feel Strategic alliance is one of the best approaches for all the organizations because every organization provides their own services but when couple of companies come together with their strategic initiative both of their services can be used at the same time. This helps customers to enjoys a lot and this also improves their reputation, brand value for each of the organization.

References:

D, A., & K, M. (2019). Spotify & Uber Alliance. Retrieved from venngage: https://infograph.venngage.com/p/155195/spotify

Kenton, W. (2019, September 5). Strategic Alliance. Retrieved from Investopedia: https://www.investopedia.com/terms/s/strategicalliance.asp