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Essay / Research Paper Abstract
This 7 page paper looks at the concept of strategic alliances; what they are, why they take place and the potential benefits and difficulties that they may present with specific focus on international alliances. Numerous cases are used to illustrate the points raised. The bibliography cites 6 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEinterall.rtf
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Unformatted sample text from the term paper:
alliance is that a firm, or firms, will gain more benefit from working together rather than working alone, however, it should be noted that where this occurs there only needs
to be an alignment of goals, the goals may not be the same, although they may be similar (Mintzberg et al, 2008). For example, where a strategic alliance takes place
over international boarders the goals of the different parties may include the desire by one partner to access a remote market while for another there is the potential benefit of
technology or knowledge transfer, this has been seen with many of the alliances undertaken by Genesis Research and Development Corporation, where specialist knowledge exists, but benefits from both transfer in
some cases as well as access to new markets with the many strategic alliances that have been undertaken. The complimentary rather than identical nature of the goals of the partners
helps to create the potential for advantages to be gained, however there are also other alliances where the primary goal is to increase business. When looking more closely at how
and why this occurs and the benefits along with the costs, different types of strategic alliances need to be considered. There are two
main types of strategic alliances, the first is that which take place between companies at the same stage in the value chain that may deal in competing products or services,
or complimentary goods and services. These are horizontal in nature. The motivation factors behind these are the economies of scope or scale (Nellis and Parker, 2006). Alternatively, it may be
to gain access to a wider audience geographically. This type of alliance may be typified with the Japanese company Toshiba. This company has
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