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chapter 9: Entry Strategies, Aliances, Evolution, Entry to Foreign Market
chapter 9: Entry Strategies, Aliances, Evolution, Entry to Foreign Market
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STRATEGY ALLIANCES: (SAs) are collaborations between independent companies using equity modes, non-equity contactual agreements or both .
JV and short-term contractual agreements are forms of strategic alliances example: SMART=Swatch+Mercedes
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disadvantages: low-cost route to technologies and market, competitor you choose will benefit from you secrets, failure rate very high, some run into serious financial and managerial trouble
for success of an alliance: partner selection, alliance structure, management capability, example in the airline industry, national airlines from alliances to connect to all major destinations, also share frequent flyer programmes and facilitates and resources such as passenger lounges.
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