Risks of Strategic Alliances with outside partners

Question

What are the risks of Strategic Alliances with outside partners?

Answer 1

The risks of Strategic Alliances with outside partners are as follows:

1. Achieving affective collaboration between the independent companies, each with dissimilar motives and perhaps conflicting objectives, is not simple.

KEY CONCEPT:

Strategic alliances are more effectual in helping establish a beach-head of new opportunity in world markets than in sustaining and achieving global leadership.

2. If a company is aiming for global market leadership, then cross-border acquisition or merger may be a superior choice than cross-border joint ventures or alliances.

3. Cross-Border Strategic Alliances relates the experiences of different companies with cross-border strategic alliances.