Strategic Alliances Describe Each Company the Companies

Strategic Alliances

Describe Each Company

The companies analyzed are the Eastcom Systems and Convergence Strategies. Strategic alliance between Eastcom Systems and Convergence Strategies is formed in direct response to customer demands for International TEM solutions in EMEA and APAC regions. The alliance was formed in November 2009 wherein Eastcom Systems Pte Ltd., the global provider of world class universal cost optimization solutions for large and medium sized enterprises, formed an alliance with the Belgian-based Convergence Strategies, a leading business consulting and TEM solutions provider in EMEA. Both would then jointly serve other multinational corporations in the area of telecom cost cutting on a global basis. (Eastcom, 2011a)

Eastcom Systems from Singapore serves its customers through a network of partners while the Belgian-based Convergence is a business and ICT solutions which provides solutions to business change using business strategies and the supporting ICT solutions that support these strategies. The aim is to provide cost savings, increased margins, with better business solutions. Convergence has many partnerships with leading companies worldwide and the alliance with Eastcom Systems was on the telephony sector. (Eastcom, 2011b) The alliance thus can combine the needs of the customers at both ends -- and looking for both kinds of services that can help the client expand. In other words the alliance promotes outsourcing to the MNCs and provides international services jointly.

2) Describe a strategic alliance, including the economic benefits to both parties.

Strategic alliances are the modern world's most expedient organizational forms and are used by companies to enter new markets in mostly developing countries. Thus multinational companies have gone on to create strategic alliances with even non-profit organizations. (Gehrmann, 2005) There is not yet a formula that can measure the success of strategic alliances because the issue of alliance performance is based on the way the partnership is organized. In this case the companies are in the telecom and communication sector which is a costly service that the client MNCs would like to have a new system that cuts costs. It is known that for a long time global companies find it hard to manage their telecom costs, and the contracts and invoices and the centralization of the contract management processes. These problems are addressed by Convergence's TEM solutions for international telecom management. (Convergence Strategies, 2010)

Along with the facility Eastcom Systems could bring this facility to Asia and thus bridge the gap in the Asian markets while its expertise in cost optimization can be achieved by the outsourcing of knowledge components and pooling together of joint resources and capabilities. There is also a likelihood of expansion for both partners in the respective territories in the field of their expertise.

3) Identify at least three issues of CSR: