companies and this alliance offers a convenient procurement solution for both current and new customers.
Sometimes alliance partners are also fierce competitors. For instance, in the face of rising fuel prices, the express delivery service DHL has formed an alliance with rival company UPS. Under the agreement, UPS provides all airlift services for DHL in the Us. According to one DHL executive, the customer doesn't actually see a difference at all unless they pay attention to the color of the partner’s planes.
Other alliances are formed between companies that operate in completely different industries. Choice Hotels and 1-800-Flowers share call-center employees because doing so is a cheaper alternative than outsourcing. When one company experiences increased demand for its products and services, it can call on its partner’s employees rather than add staff or use a temporary agency. At a given time, as many as 100 call-center agents may be taking orders for the other company. Both companies report higher employee retention and better requirement.
For an alliance to succeed in the long term, it must be built on commitment and trust. Relationship commitment means that a firm believes that an ongoing relationship with some other firm is so important that it warrants