MBA 270
Exercise 2
10/18/2011
Strategic Alliances
Collaboration with adversarys has father increasingly popular. On the surface the thought of partnering up with a competitor seems counterproductive. So why is the formation of strategic alliances gaining popularity? almost things to consider before forming strategic alliances ar; what is the likelihood of success, are we compatible, what the timetable of the alliance should be and who is going to make important decisions? palmy alliances can lead to cost reduction, outside learning and bring down risk of infections. Some potential pitfalls a company should be awake of include; revealing core skills and technologies to their competition, the inevitability of making your competitor better off in well-nigh form and solely focusing on short- end point success. A manager essential have a strategic plan before first appearance an alliance to ensure a long term bring in and the avoidance of potential pitfalls.
Strategic alliances can take to heart as a great way to enter new trades. In the Tap Your Subsidiaries for Global Reach reading, Bartlett points out that some subsidiaries play the role of being a Black Hole.
The term refers to a auxiliary that is in a large strategically important market but is struggling to gain market share due to strong barriers to entry such as; competition, high cost and time. A strategic alliance would serve as a great method for a subsidiary to manage its way out of the black hole.
Western companies practically partner with Asian competitors when they are trying to penetrate a new market. An alliance is a fast and low risk method for entering new markets. General move create an alliance with the Japanese food company Ajinomoto. General Mills was hoping to benefit from the local expertise of Ajinomotos marketing and diffusion channels. Ajinomoto wanted to learn the skills, processes and gain exposure to new products perfected by its Western counterpart. Ideally an alliance is would result in a win-win...If you want to get a full essay, articulate it on our website: Orderessay
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