Formation of strategic alliance for a software company

Although most chained stores such as Walmart have been using sophisticated Point of Sale (POS) systems for the past decade, many small and medium sized retail stores are still using legacy point of sale solutions. This provides an opportunity for Mightywand, a POS solution provider, to build its market share in this niche market. In order to quickly establish a position in this market, Mightywand must pick an appropriate method to effectively market its products. This paper, first, introduces one of the strategic methods of development - alliances. It then examines the retail market for POS product, the external environment, Mightywand's competitors and its internal competence. Based on this in-depth analysis, a strategy for formation of alliance is proposed.