Facilitator:
Globalization is a worldwide phenomenon that prominently took place in late 1980s and the early 1990s affecting businesses considerably. Some of the renowned aspects linked to globalisation include, strategic alliances and joint ventures. In this context, the strategic alliances are a phenomenon that essentially accompanied globalization presenting in late 1980s and the early 1990s. According to Kang and Sakai (2005), in a research carried out in United States by Thomson Financial Securities Data, businesses had engaged in more than 9200 strategic alliance deals, both at local and international levels by 2005. However, this year recorded the highest number of deals in the decade. The strategic alliance trend began in 1989 with 1100 deals globally. The essence of such alliances revolves around the fact that alliances are associated with certain synergies that boost competitive advantage and minimize the chances of failure.
External Factors
A part from reducing unnecessary competition in local and global market, international alliances and joint ventures have significantly advanced business operations and products promotions both in local and international market. In addition, business alliances and strategies are effective in addressing barriers that complicate entry in new and international markets. . International strategic alliances and joint ventures were as well linked to numerous market synergies that made penetration of the market difficult and complicated. Business executives observe that the other reasons that explain why the organizations aggressively pursued the alliance idea is that international strategic alliances and joint ventures helped in productive co-marketing (Buckles, 2011). For example, by examining the agreement between B & N Bookstores and Starbucks, the organizations were mutually gaining and benefiting from one another popularity and reputation. By considering and evaluating the significant and relevant of co-marketing in contemporary local and international market, it is apparent that international strategic alliances and joint ventures allow the member organizations to concentrate and advance their competitive advantages.
Internal factors
References
Buckles, J. F. (2011). Understanding the Benefits and Challenges of Strategic Alliances. International Franchising Association Journal http://www.franchise.org/Franchise-News-Detail.aspx?id=56303
Das, T. K. (2010). Researching strategic alliances: Emerging perspectives. Charlotte, NC: Information Age Pub.
Kang, N & Sakai, K. (2005). International Strategic Alliances: Their Role In Industrial Globalization. STI Working Paper 2000/5. OECD Publishing
Wakeam, J. (2003). The Five Factors of A Strategic Alliance. Ivey Business Journal http://www.iveybusinessjournal.com/topics/strategy/the-five-factors-of-a-strategic-alliance#.UdyFJTtHKQk
