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Strategic Alliances / Strategic International Alliances / Global Strategic Partnership - Term Paper Example
Pages 9 (2259 words)
There is high complexity, uncertainty as well as discontinuity in the business environment. It is because of the altering market conditions, strengthened global market competition along with short product…
national markets and they are also not capable of making use of the wide range of technologies which is needed for the creation, production, development as well as marketing of new products. Therefore, international strategic alliances have become a significant method to rationalize operations in order to overcome the problems and to assist firms to recover and to administer competitive position in global markets. It further assists in attaining global marketing success because strategic alliances offer marketers a good solution that lack in terms of distribution to enter into global markets (Kauser & Shaw, “The Inﬂuence of Behavioural and Organisational Characteristics on the Success of International Strategic Alliances”).
The main objective of this paper is to identify the concept of strategic alliances/ strategic international alliances / global strategic partnership, the reason for their creation, the reason behind their success and the reasons why a few of the strategic alliances fail.
Strategic alliances can be identified as the association between parties to take part in agreed upon objectives or to meet the requirements of the business while continuing to be self-regulating organization. Such collaboration generally takes place between mergers & acquisitions and organic growth. A strategic alliance can be defined as conformity between firms to conduct business in a way which is more than normal company-to-company dealings, however cannot be characterized as merger or full partnership. These alliances may be either in the form of unofficial handshake consent to official consents where the period of contract tends to be longer and the parties may as well exchange equity and put in capital so that it can create a joint venture corporation. In other words, it can be stated that strategic alliances are generally partnerships related to two or in excess of two corporations or business units that work in a collaborate way in order to attain deliberately ...
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