Strategic Alliances Essay

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Q1. Discuss the meaning of strategic alliances in the Kenyan context, how significant are the alliances to the management of modern organization Abstract Strategic alliances can be effective ways to diffuse new technologies rapidly, to enter a new market, to bypass governmental restrictions expeditiously, and to learn quickly from the leading firms in a given field. However, strategic alliances are not simple or easy to create, develop, and support. Strategic alliances projects often fail because of tactical errors made by management. By using a well-managed strategic alliances agreement, companies can gain in markets that would otherwise be uneconomical. Considerable time and energy must be put forth by all involved in order to create a successful alliance. It is essential that corporations enter into strategic alliances arrangements with a comprehensive plan outlining detailed expectations, requirements, and expected benefits. | This paper will examine the literature on strategic alliances also investigate literature concerning advantages and disadvantages of entering into a strategic alliance. Finally, conclusion on strategic alliances. INTRODUCTION Due to increased globalization of businesses strategic alliances are gaining importance worldwide for various reasons which range from market access to reduction of risk. Firms that enter into strategic alliances often focus on the benefits that the alliances will provide without considering costs involved in the formation and maintenance of the alliance. Despite the clear identification of the potential benefits, the costs incurred are often both substantial and often difficult to predict [Morris and Hergert 1987]. Strategic alliances can cause major problems if not handled properly, for example, the failure of the merger between the French firm Carnaud and British Metalbox Packaging. This merger failed
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