BUS350 - Ch.11


Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e low cost pressures and low pressures for local responsiveness. 31 of 40 The Evolution of Strategy Question: Is the choice of strategy static? As competition increases, international and localization strategies become less viable. To survive, firms may need to shift to a global standardization strategy or a transnational strategy in advance of competitors. 32 of 40 Strategic Alliances Question: What is a strategic alliance? Strategic alliances refer to cooperative agreements between potential or actual competitors. Examples include • formal joint ventures • short term contractual arrangements The number of international strategic alliances has risen significantly in recent decades 33 of 40 The Advantages of Strategic Alliances Question: Why form a strategic alliance? Strategic alliances are attractive because they • facilitate entry into a foreign market • allow firms to share the fixed costs (and associated risks) of developing new products or processes • bring together complementary skills and assets that neither partner could easily develop on its own • can help establish technological standards for the industry that will benefit the firm 34 of 40 The Disadvantages of Strategic Alliances Question: What are the drawbacks of strategic alliances? Strategic alliances can give competitors low‐cost routes to new technology and markets. Unless a firm is careful, it can give away more in a strategic alliance than it receives. 35 of 40 Making Alliances Work Questi...
View Full Document

This document was uploaded on 03/05/2014.

Ask a homework question - tutors are online