The Analysis of the Mergers and Acquisitions - Essay Example

Business Alliances
An alliance is a joint venture or partnership between two or more businesses. The venture is normally brought about by the desire to share the available market, technology, human resources or business knowledge (King, D. R. et al., 2008). Several strategies are employed while building a successful alliance. The first step is to identify the business partner who has the needed asset such as superior technology. This should be followed by drawing a formal agreement before eventually implementing it.

Since alliances involve the coming together of different entities, it reaches a time when, just like a divorce, it is dissolved. This might result from factors including equity; nationality; relational capabilities; and knowledge and experiences. Alliances usually bring the merging of different firms which have diverse national, and cultural backgrounds. Besides, they have different interests and market share. This might result in an unequal market share in which some firms enjoy dominance over others. Therefore, it reaches a point when they need to be dissolved to enable each of the partners to part ways (DePamphilis, D., 2008).

However, in my opinion, I believe that learning and experience is the most important factor in an alliance. It can have a greater influence in the termination of the alliance because it can enable the partnering firms to gain knowledge on modern technology, innovations and current industry trends. However, without knowledge, it might not be easier for any alliance to work. With no knowledge and experience about the market trends, it will not be an easy task to produce goods and services which will satisfy the clients. Therefore, deliberate steps should be taken to ensure that information is sought. Knowledge is a very powerful tool for the success of any business alliance.