The Global Logic of Strategic ALiiances
The topic under review is strategic alliances. This particular form of non-equity alliance between firms in the same industry (competitors) is becoming an increasingly popular way of conducting business in the global environment. Many different reasons of why such alliances are occurring have been recognised. These include: the increasing globalisation of the world's economy resulting in intensified global competition, the proliferation and dispersment of technology, and the shortening of product life-cycles. This critique will use Kenichi Ohmae's viewpoint on strategic alliances as a benchmark for comparison. Firstly, a summary of Ohmae's article will be provided. Secondly, in order to critique Ohmae's opinion, it will be necessary to review other literature on the topic. Thirdly, a discussion of the various viewpoints and studies, that have hence arisen, will be discussed in detail. Finally, conclusions will be drawn with implications for companies operating in today's global environment, together with suggestions for future research on strategic alliances.THE GLOBAL LOGIC OF STRATEGIC ALLIANCES The underlying argument or reasoning behind Ohmae's opinion that strategic alliances, or entente, are the onl
Hagedoorn, J. (1995) A Note on International Market Leaders and Networks of Strategic Technology Partnering, Strategic Management Journal, Vol. 16, 241-250. Ohmae, K. (1989) The Global Logic of Strategic Alliances, in Beyond National Borders, Dow-Jones, Irwin. Despite the criticisms of Ohmae's (1989) article, from the literature reviewed, it is widely accepted that it is better to collaborate rather than compete in today's dynamic, global business environment. However, strategic alliances are not all smooth sailing. They should be entered into when the expectations (and to an extent, the capabilities) of both partners is similar and the power and managerial skills are near equal. Added to this, each partner should receive some benefit from the strategic alliance. Osland & Yaprak's (1994) article expands the view of marketing to incorporate understanding and development of strategic alliances and issues in managing strategic alliances over time. The authors posit that organisational learning has become imperative for global strategic effectiveness in the 1990s because it has been increasingly difficult for firms to individually develop the sufficient levels of knowledge to successfully compete. Strategic alliances provide the means of learning through inter-firm relationships.
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Approximate Word count = 2709
Approximate Pages = 11 (250 words per page double spaced)
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