We believe the best option available for air miles here is
STRATEGIC ALLIANCE WITH COMPETITORS
A Strategic Alliance is a formal relationship formed between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. The alliance is a Cooperation or Collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts.
The Aim of strategic alliance is to create a long term competitive advantage on a global scale. Collaboration can be done by the means of a joint venture, licensing agreement, joint research and development programs etc.
Strategic allowancing leads to marketing benefits like access to new markets distribution channels can be achieved, product gaps are filled and product line are widened.
➢ Air Miles a airline loyalty program and nectar is diversified loyalty program spanning different businesses.
➢ Nectar does not pose a direct threat to Air Mile’s, however, nectar might take away some Air Miles’ market