Strategic Alliances in the Fast-Moving Consumer Goods (FMCG) Sector: A Qualitative Assessment in the Bangladesh Market

Abstract

Abstract This study seeks to investigate the intricacies of strategic partnerships in the Fast-Moving Consumer Goods (FMCG) industry in Bangladesh. The research aims to explore the motivations, challenges, critical success factors, and implications of alliances in the fast-moving consumer goods (FMCG) industry. This will be done through 40 in-depth interviews with industry experts, managers, and executives from various FMCG companies. The study focuses on the rapidly changing and competitive market environment. The study utilizes qualitative analysis to reveal a notable transformation in the objectives and extent of strategic relationships. Originally centered on resolving issues related to distribution, alliances have progressed to include other goals such as innovation, market growth, and operational effectiveness. The motivations behind these agreements encompass risk reduction, consolidation of resources, market entry, and obtaining a competitive advantage. Nevertheless, fundamental difficulties were recognized, such as cultural gaps and opposing objectives among collaborating companies. To overcome these obstacles, it is necessary to implement strategic initiatives such as cultural integration programs, efficient communication techniques, and well-defined governance frameworks. The study's conclusions are primarily constrained by its qualitative nature, which may impact its generalizability. Moreover, the emphasis on the Bangladeshi Fast-Moving Consumer Goods (FMCG) sector could restrict the wider repercussions for the industry. However, the results provide practical advice for FMCG companies, including solutions to overcome difficulties and improve the efficiency of strategic partnerships. Furthermore, the incorporation of sustainability and Corporate Social Responsibility (CSR) activities into these partnerships signifies a transition towards ethical corporate practices, which not only benefits business objectives but also contributes to the well-being of society. This study enhances the current body of knowledge by offering empirical observations on the changing characteristics, difficulties, and key determinants for success in strategic partnerships within Bangladesh's FMCG industry. Nevertheless, the limitations encompass potential biases from participants and the inherent subjectivity in the qualitative research methodology.