Entry Strategies: Strategic Alliances

ENTRY STRATEGIES: STRATEGIC ALLIANCES I.INTRODUCTION The past two decades has been an era of planetary evolution, in which the globalisation of markets, the convergence of and rapid shifts in technologies, and the equipment mischance of many traditional industry boundaries, has rendered strategical alliances a agonistical necessity (Ohmae, 1989). A single firm is unlikely to occupy all the resources and capabilities to achieve global competitiveness. Therefore, collaboration among organisations that possess completing resources is often necessary for survival and growth (Dussauge, Garrette and Mitchell, 1998). Defined as a long-term, explicit contractual agreement pertaining to an exchange or combination of some of a firms resources with another firm(s), strategic alliances allow firms to share risks and resources, gain knowledge and technology, expand the lively product base, and obtain access to new markets (Burgers, Hill and Kim, 1993; Dacin, Hitt and Levitas, 1997; Hagedoorn and Schakenraad, 1993; Morosini, 1999). not surprisingly then, strategic alliances have become an increasingly commonplace strategy, particularly for entry into international markets (Osborn and Hagedoorn, 1997; Cullen, 1999).

Approximately 20,000 alliances were formed widely distributed between 1996 and 1998 (Harbison and Pekar, 1998; cited in The Economist, May 15, 1999), and it has been estimated that the number of strategic alliances go forth continue to increase at an annual rate of 25 per cent (Day, 1994). However, despite the frequency with which todays alliances are occurring, in that location is overwhelming evidence to suggest that alliances fail to deliver anywhere near the promised payoffs. The percentage of alliances that are failures runs the gamut across the research from a low 30 per cent (Cullen, 1999), to a high 70 per cent (Dacin et al, 1997). Apart from the inherent risk of entering into an alliance, spouse compatibility is often cited as the main reason for alliance failure (Dacin et al,... If you want to get a full essay, order it on our website: Orderessay

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