Search icone
Search and publish your papers

When should firms use strategic alliances in their international operations?

Or download with : a doc exchange

About the author

Level
Expert

About the document

Published date
Language
documents in English
Format
Word
Type
presentations
Pages
9 pages
Level
Expert
Accessed
0 times
Validated by
Committee Oboolo.com
0 Comment
Rate this document
  1. Modes of foreign entry
  2. Access to new foreign markets
    1. Geographical
    2. Cultural
    3. Political / legal
    4. Fast internationalisation
  3. Reduce costs
    1. Economies of scale and economies of specialization
    2. Research and development
  4. Competition
    1. Bargaining power of strategic alliances
    2. Global Brand Formation
    3. Arrival of new competitors
  5. Specialise in competencies
    1. Learning within alliances
    2. Convergence of technology and products
  6. Risk sharing

Club Med, Coca Cola, Microsoft or even Nestlé are companies that have already used strategic alliances in order to be more competitive. Companies generally recognize that to gain a competitive advantage they may have to enter into alliances with other firms. According to David A. Aaker, ("Developing Business Strategies", 2001), we may differentiate between alliances and strategic alliances. He stated that an alliance may be defined as "a voluntary association that furthers the common interests of the constituent members". On the other hand, a strategic alliance may be defined as "at least two companies or partners voluntarily combining value chain activities, architecture, and value chain linkages for the purpose of increasing individual and collective value addition, increasing competitive advantage and achieving agreed or common objectives". In this essay we will focus on strategic alliances.

Similar documents you may be interested in reading.

The strategic alliance between Avebe and Noveon that failed to achieve its objectives

 Business & market   |  Business strategy   |  Term papers   |  03/05/2009   |   .doc   |   5 pages

Strategic alliance: Avebe and Noveon

 Business & market   |  Business strategy   |  Research papers   |  03/05/2009   |   .doc   |   5 pages

Top sold for business strategy

International Business Strategy - Acer, Inc.: Taiwan's rampaging dragon

 Business & market   |  Business strategy   |  Case study   |  09/29/2010   |   .doc   |   8 pages

Nike's outsourcing strategy

 Business & market   |  Business strategy   |  Case study   |  01/27/2011   |   .doc   |   5 pages