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Strategic alliance rather than go it alone in international operations

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Why would a company want to join a strategic alliance rather than go it alone in international operations? What are the potential advantages and disadvantages?

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Solution Summary

The expert determines why joining a strategic alliance rather than go it alone in international operations is better. The potential advantages and disadvantages are given.

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Globalization and technology revolution has changed the face of Today's business. It has opened a gate for companies to explore global opportunities worldwide. It is important for an organization to know their strength and weaknesses before going global and exploring international opportunities. Since companies are competing in global fields strategic alliances are becoming important form of business activity in many industries. Strategic alliances offer an opportunity to pool and share resources with other company and an opportunity to accelerate corporate growth, tap new sources of innovation and open new markets through effective partnerships.Through Strategic alliances companies can improve their competitive positioning, penetrate new market, supplement their skills particularly technical and can share major risks and cost involved in development of various new and important projects. In spite of several benefits it has some drawbacks too. Let's discuss pros ...

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