Successful Strategic Alliances in the

Abstract

There is a general trend for organisations to enter into strategic alliances to manage resources and gain competitive advantage. Generally these alliances are formed in order to obtain skills or resources that can fulfil their immediate requirement. Organisations are too focused on the immediate need rather than considering the impact on their business in the long term. This result in many alliances to fail causing damage to both organisations involved. The role of the energy industry is critical in contributing to the growth in the economy of South Africa. The skill and resources used in these industries are vital and valuable. Failing of alliances in these industries could cause damage to the economy of the country. This research identifies some of the critical success factors which could assist in creating and maintaining a successful strategic alliance in the energy industry in South Africa. The research methodology used for this study was qualitative analysis, in order to find the critical success factors for strategic alliances. The data was collected by interviewing employees of the organisations in the energy industry and their alliance partners using a questionnaire. Further effort was made to find the normally used best practices utilised in this industry. One of the key findings from this research was that critical success factors were present in strategic alliances in the energy industry in South Africa. The other substantial finding in this research was that the support and monitoring of senior management during the formation and execution of a successful strategic alliance. Based on the key findings, a variety of recommendations were made to the businesses in the energy industry in South Africa and to the organisations entering into alliances in this industry. This research recommends ways in which these critical success factors are properly implemented in order to obtain successful strategic alliances in the energy industry in South Africa