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Alliances as Strategic Tools - Book Report/Review Example

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Article review (alliances as strategic tools) By (Name) 1.1 Introduction Strategic alliance is the rational way to enter in new markets, to be more globalized and to develop new and fast technologies in this era. I have chosen this article because strategic alliances such as partnership, joint ventures, mergers and acquisition, these have become quite popular in relation to globalization…
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Alliances as Strategic Tools
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Download file to see previous pages Therefore, it is imperative to identify the basic factors and results of strategic alliances. 1.2 Objective Presently, many organizations are forming strategic alliances in order to be more globalized and successful. Therefore, it becomes imperative to identify the main cause of these alliances as well as the end results. To find answer to this situation this paper seeks to identify the possible drivers and motives which lead to strategic alliances and the process of decision making while entering in an alliance. It also helps to identify the main factors on the basis of which an alliance succeeds or fails (Dodourova Mariana, 2009). 1.3 Methodology All data was collected from three industries i.e. media, computer and telecommunication on the basis of interviews. However, CTMI (media industries) were selected as the main point of research on the basis of their technology incentives and high concentration towards collaborative relationship. A qualitative methodology was used to analyze the data. Interviews were conducted in two forms semi structured and face to face on the basis of individual experiences. . Results of data indicated that firms are trying to make full use of their resources and to do so partnership has become very popular in these industries. 1.4 Findings The results indicate that partnership among organization is only successful if there is good coordination and communication among the firms. Other characteristics such as control mechanism and structure of organization showed less impact on firms after partnership, but these factors though having less impact cannot be neglected because problems in the structure, forms or controls can create a big mishap in the alliance. One of major factor which leads to the failure of strategic alliance is cultural issues. These conflicts can arise among various department of a firm. Culture is the most important factor in strategic alliance and this paper has provided very few evidence and research in relation to this factor. However, no evidence was found in relation to the fact that strategic alliances are mainly done to create synergies and to maximize the benefits. Only some few large companies tend to create synergies after alliances. Results also indicated that alliances fail due to changing market conditions rather than just due to relationships. So I suggest that all factors should be considered while engaging in alliance with other firm such as culture, structure, coordination etc., because each factor is important for a alliance to be successful and mainly alliances should result in creating synergies then only the goal or objective of a strategic alliance can be accomplished. 1.5 Implication In case if a firm does not possess necessary assets to fulfill its goals then it should go for internationalization. The international marketing theory also implies that firms compete in the market on the basis of their capabilities and competencies. Firms try to enter in other international markets on the basis of optimal combination through which their resources can be utilized fully. But the finding of the research indicates that in practice alliances are created to cope up with new technological competencies, economic and environmental changes or to overcome the lack of resources. Firms enter in alliance on the basis of their competitive strategies. They go for such relationship which opens more ...Download file to see next pagesRead More
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