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Entry Strategies: Strategic Alliances

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Issue:

Business

 

Written by:

Jennifer G

 

Date added:

October 20, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

14 / 3878

 

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946 times

 

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Therefore, collaboration among organisations that possess complementary 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 firm's resources with another firm(s), strategic alliances allow firms to share risks and resources, gain knowledge and technology, expand the existing product base, and obtain access to new markets (Burgers, Hill and Kim, 1993; Dacin, Hitt and Levitas, 1997; Hagedoorn and Schakenraad, 1993; Morosini, 1999)...
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Not surprisingly then, strategic alliances have become an increasingly popular strategy, particularly for entry into international markets (Osborn and Hagedoorn, 1997; Cullen, 1999). Approximately 20,000 alliances were formed worldwide 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 will continue to increase at an annual rate of 25 per cent (Day, 1994)...
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