International Strategic Alliances

Flashcards covering key vocabulary and concepts related to international strategic alliances from Chapter 13.

Strategic Alliance

Cooperation between firms that involves cross-licensing of proprietary technology, sharing of production facilities, co-funding of research projects, or marketing of each other’s products using existing distribution networks.

Joint Venture (JV)

Strategic alliance where firms share management responsibilities.

Strategic Alliance Characteristics

Purpose, Scope, and Duration

Benefits of Strategic Alliances

Shared Risk, Shared Knowledge and Expertise, Synergy and Competitive Advantage, Ease of Market Entry

Scope of Strategic Alliances

R&D, Production, Marketing, Finance, Comprehensive

Functional Alliances

Production Alliances, Marketing Alliances, Financial Alliances, R&D Alliances

Implementation of Strategic Alliances

Selection of Partners, Form of Ownership, Joint Management Considerations

Selection of Partners Considerations

Compatibility Between Partners, Nature of Products and Services, Relative Safeness of the Alliance, Learning Potential of the Alliance

Joint Management Considerations

Shared-Management Agreement, Assigned Arrangement, Delegated Arrangement

Pitfalls of Strategic Alliances

Incompatibility of Partners, Access to Information, Distribution of Earnings, Loss of Autonomy, Changing Circumstances