Srategic Lliance
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- Date Submitted: 12/08/2013 05:23 PM
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“INTERNATIONAL BUSINESS STRATEGIC ALLIANCE: OVERVIEW OF IT’S IMPORTANCE TO BUSINESS GROWTH AND RELATING ISSUES”
ABSTRACT
Alliances have become a core element of today’s business strategies in competing for a market leadership position. Strategic alliance can be defined as an agreement between two or more organizations to cooperate in a specific business activity, so that each organization benefits from the strengths of the other, and gains competitive advantage. The formation of strategic alliances has been seen as a response to globalization and increasing uncertainty and complexity in the business environment. Competing successfully in globalized markets requires a complex mix of product, price, promotion and distribution. It requires novel approaches to ownership in overseas involvement and the development of new modes of global relationships. In response to these needs, new types of alliances are emerging as corporations endeavor to meet the global challenge. Strategic alliances involve the sharing of knowledge and expertise between partners as well as the reduction of risk and costs in areas such as relationships with suppliers and the development of new products and technologies. A strategic alliance is sometimes equated with a joint venture, but an alliance may involve competitors, and generally has a shorter life span. Strategic partnership is a closely related concept. This theses analyzes international strategic alliance, its benefits to business growth, types, process of formation, and provides a few cases studies of strategic alliances. This paper tries to synthesize the scope and role of marketing functions in the determination of effectiveness of strategic alliances, undertake a literature review of the wider topic and postulate a conceptual framework that identifies a number of concepts that are likely to affect success. Several propositions from a marketing viewpoint concerning the analysis of alliance process are formulated. On the basis of...
ABSTRACT
Alliances have become a core element of today’s business strategies in competing for a market leadership position. Strategic alliance can be defined as an agreement between two or more organizations to cooperate in a specific business activity, so that each organization benefits from the strengths of the other, and gains competitive advantage. The formation of strategic alliances has been seen as a response to globalization and increasing uncertainty and complexity in the business environment. Competing successfully in globalized markets requires a complex mix of product, price, promotion and distribution. It requires novel approaches to ownership in overseas involvement and the development of new modes of global relationships. In response to these needs, new types of alliances are emerging as corporations endeavor to meet the global challenge. Strategic alliances involve the sharing of knowledge and expertise between partners as well as the reduction of risk and costs in areas such as relationships with suppliers and the development of new products and technologies. A strategic alliance is sometimes equated with a joint venture, but an alliance may involve competitors, and generally has a shorter life span. Strategic partnership is a closely related concept. This theses analyzes international strategic alliance, its benefits to business growth, types, process of formation, and provides a few cases studies of strategic alliances. This paper tries to synthesize the scope and role of marketing functions in the determination of effectiveness of strategic alliances, undertake a literature review of the wider topic and postulate a conceptual framework that identifies a number of concepts that are likely to affect success. Several propositions from a marketing viewpoint concerning the analysis of alliance process are formulated. On the basis of...