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Essay / Research Paper Abstract
This 5 page paper is written to examine the reasons why a strategic alliance may be the best option for a company that has a first mover advantage want to grow quickly, but is hampered by lack of international experience and resources. The bibliography cites 10 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEstrall.rtf
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Unformatted sample text from the term paper:
product that is developed is well suited to the international market, and at the current time there is little or no competition in most countries. Therefore, there are pull factors
making many markets attractive. The current issue is that of financial resources and also the problem of a steep learning curve. Expansion
n the past has taken place naturally. If this continues the company may well grow, but there will be a great opportunity cost. An opportunity costs is the cost
of taking one cause of action, which precludes a different course of action that would be more profitable. One strategic solution the many barriers faced, including that if financial resources
and lack of knowledge is to undertake a strategic partnership with an existing company in the region that has a related product or service. In this case with a product
that is also ready developed the need is for a partner, or partners, with the ability to distribute and support the product in the relevant countries chosen.
To undertake this strategy needs an understanding of both the benefits and advantages as well as the potential disadvantages. The product the is sold
is currently seen as a market leader. The first mover advantage has been realised in the home state. The length of the first mover advantage is limited, and only has
value if this is further leveraged, otherwise the effort and expense of seeking this position is lost (Mintzberg et al, 1998). Indeed, for most products a first mover advantage will
last on average only eighteen months (Thompson, 1998). This is true even when there are patents and copyrights protecting a product as competition will undertake to reverse engineer the goods
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