Entry Strategies: Strategic Alliances

ENTRY STRATEGIES: STRATEGIC ALLIANCES I.INTRODUCTION The past two decades has been an era of ball-shaped evolution, in which the globalisation of markets, the convergence of and rapid shifts in technologies, and the equipment disappointment of many traditional industry boundaries, has rendered strategic alliances a matched necessity (Ohmae, 1989). A single firm is unlikely to have got all the resources and capabilities to achieve global competitiveness. Therefore, collaboration among organisations that possess complementary color 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 quick product base, and obtain access to new markets (Burgers, Hill and Kim, 1993; Dacin, Hitt and Levitas, 1997; Hagedoorn and Schakenraad, 1993; Morosini, 1999). non surprisingly then, strategic alliances have become an increasingly normal strategy, particularly for entry into international markets (Osborn and Hagedoorn, 1997; Cullen, 1999).

Approximately 20,000 alliances were formed cosmopolitan 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 exit 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, quisling 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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