Essays on Importance of Strategic Alliances in International Business Assignment

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The paper "Importance of Strategic Alliances in International Business " is a perfect example of a business assignment.   International businesses will often seek strategic alliances in order to gain access to technologies, finances, and human capital talent held by the allied partner. As one example, international businesses must operate in diverse cultures that differ significantly from the home country and the partner does not always maintain adequate knowledge about foreign culture to be able to develop appropriate products or services that will be adopted by the new international target markets.

Seeking strategic alliances with a partner that currently operates in this foreign country can give the business significant advantages through consultation with management and support staff in the partnered business to help the other partner understand how to effectively market or promote products using cultural connotations localised for the new international markets. As one example, the allied partner might maintain a vast database of knowledge about market preferences and consumer characteristics relevant to the host country that is not currently present in the other partner’ s technology support networks. Through the alliance, the company will gain access to this critical data about consumer lifestyle and decision-making associated with purchase intention.

Rather than having to go through the process of experiential learning, which might sometimes take months or even years to understand these important consumer characteristics, the alliance provides instant knowledge transfer that can be disseminated throughout the first partner’ s organisation. Essentially, sharing this technological database creates instant synergies that can be observed by making rapid brand connections when attempting to launch a new innovation that, without the alliance, might not be sufficient to meet with host culture needs and attitudes.

Arnold and Fernie (2000) describe Wal-Mart’ s experiences in establishing strategic alliances in order to gain culturally related knowledge to better serve foreign consumers in the new market environment.


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