We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Explain the importance of strategic alliances in international business and the reasons why companies choose this growth strateg - Assignment Example

Comments (0)
Strategic alliances Name Date Institution A strategic alliance provides an avenue for the corporate growth via increased availability of new sources of innovation and new markets. Alliances fashion a core initiative for corporations as it aids the corporation in gaining global significance…
Download full paper
Explain the importance of strategic alliances in international business and the reasons why companies choose this growth strateg
Read TextPreview

Extract of sample
Explain the importance of strategic alliances in international business and the reasons why companies choose this growth strateg

Download file to see previous pages... This action of entering into foreign markets opens up the firm to benefits of economies of scale and increased opportunities for marketing and distribution. However, the cost linked with entering into foreign markets may far out-span the capabilities of a single firm (BLEEKE & ERNST 1993, 27). This then dictates the need to enter into a strategic alliance with another international firm. This has the effect of expediting the rate of entry into the foreign market albeit maintaining relative low costs (SHENKAR & REUER 2006, 71). Several logistical tussles are still to be encountered with entry into foreign markets. These tussles range from entrenched competition, unfriendly government regulation and irrelevant beauracracies (GIBBS & HUMPHRIES 2009, 45). There is a higher prospect of overcoming these obstacles when strategic alliances are employed, as contrasted to when the firm decides to venture into foreign markets on a solitary basis. There exist three core categories via which strategic alliance can be regarded. The first one of these is joint ventures. Joint ventures are formed when the respective companies combine to form an independent company. The respective companies decide to share the profit and loss of the new entity that will be created. One of the most notable cases where joint venture was created is that of Sony Ericson. Sony and Ericson decided to form a new entity known as Sony Ericson Mobile Communications. However, this new entity has just recently been fully owned by the Sony Corporation who renamed it Sony Mobile Communications. The next category of strategic alliances is equity strategic alliances. This entails the new partners having different percentages of equity in the new venture. Depending on the motive or goal of the strategic alliance, the partners can either opt to share equity in each other’s business on in one business. The determining factor is the reason for the strategic alliance. An example of such an alliance is that between Star-Bucks and Kraft. The last category of strategic alliance is non-equity strategic alliances. This is when a strategic alliance is carried out on the terms of a contract agreement rather than on the ownership basis. The relationship of this kind is usually referred to as a contractual relationship. A good example of a non-equity strategic alliance is the one between Vodafone and Telecom Malaysia. The deal was signed in 2006 whereby Vodafone was the leading partner. Strategic alliance requires a well though-out procedure to ensure the alliance is successful and realizes its intended goal(s). Prior to embarking on an alliance, firms should choose partners whose strategic goals and objectives are compatible to their own. The firm should take into consideration the extent to which synergy will be availed. Additionally, firms should endeavour to participate in strategic alliances that complement the firm. This translates to mean that, firms ought to engage in alliances that will complement their skills, their products and services in addition to its market share. Akin to all business agreements, rules and regulations must be incorporated into strategic alliances. These factors are divided into scope of operation and length of cooperation. The scope of operation entails partners agreeing on how to handle potentially competitively sensitive information. Secondly, it expounds on what will be shared and what will ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
International Business
The business infrastructure in UAE including airports, shopping malls and port facilities are highly modernized. UAE is a preferred business and trade destination for most companies in the world. The financial system is liquid while the political environment is stable.
8 Pages(2000 words)Assignment
International Business
On the other hand, international business is the exchange of goods, services, technology and capital for the same or monies worth at a profit across the borders of countries (Adekola & Sergi, 2007). Orchestrated by the imprint of an ethnically homogeneous Islam community the United Arab Emirates has no infrequent ethnic tensions.
3 Pages(750 words)Assignment
Business Growth and Sustainability
A decision to raise funds by playing Fifa 12 seemed a strategic plan in raising money within a very short time span. The project was to take place within a week. Fifa 12 seemed to incorporate fun, strategic planning, time factor and generation of funds. The tournament was to be held during university time in an attempt to yield more of a consumer base for the tournament.
8 Pages(2000 words)Assignment
International Strategic Management
According to the report strategic management is responsible for providing an overall direction to the firm by involving or taking into consideration the specific organizational objectives, plans and policies. Strategic management also involves allocation of resources and implementation of plans. SM is an important function of business houses.
12 Pages(3000 words)Assignment
Strategic Business Alliances
As the paper declares, the advantages of the business alliance include the increase in sales, expansion of market share, increased tax efficiency, economies of scale and broadened diversification. It is important for people criticizing business alliances need to understand that alliances are safe but not risky as they think. 
3 Pages(750 words)Article
Analysis of Strategic Alliances or Value Opportunities Part II
I can refer to the personal experience of an alliance that my organization engaged itself in. In this alliance which was with a supplier, the company was so much in a rush into completing the alliance process, I can say that due diligence and
1 Pages(250 words)Assignment
Describe and explain strategic and short-term planning processes and their importance in management. Identify and discuss various types of financial accounting and control methods
As a result of the importance of Strategic and short-term planning processes in business management it is always advisable for business managers to pay keen attention to
10 Pages(2500 words)Assignment
International Business
Globalization as a venture has been working and does not seem to decline in the near future (Armantier, 2008, p. 876). On the contrary, it is bound to become even more famous. Globalization as a process is possible due to traveling as well as the capability to
12 Pages(3000 words)Assignment
International business strategic
esources such as manpower, technology, raw materials and other factors of production which are required for carrying out commercial activities can easily be exchanged. The easy exchange of resources has led to increase of efficiency in both the national and the international
16 Pages(4000 words)Assignment
International business & strategic management assignment
The report incorporates an assessment of the macro-environmental factors (PESTEL analysis) of five critical nations: Denmark, Ecuador, Pakistan, Panama and South Africa. The
6 Pages(1500 words)Assignment
Let us find you another Assignment on topic Explain the importance of strategic alliances in international business and the reasons why companies choose this growth strateg for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us