Developing a good strategy is important, so also is implementing the strategy. Firms can go international through strategic alliance as an entry strategy. Strategic alliance involves going into partnership with a firm overseas. Each firm has its own goals. Both firms, agree to work together for the benefit of both firms. Each firm has competitive advantage in one or more functional area, that the other does not have. They complement each other. For example, Chrysler motors has a lot of dealership in the USA, While Mercedes Benz has quality attributes and lots of dealership in Germany. This strategic alliance will benefit Mercedes in USA, while it will benefit Chrysler very much in Germany. On a domestic scale, ATMs in grocery stores, Pepsi and mountain dew cans in the same vending machines are also strategic alliances. Each firm has their goal, complements each other and both benefits from the alliance. There are three types of alliances, In a joint venture alliance, it is created and owned by the two or more firms. They can share technology, production and markets. The joint venture agreement establishes a majority and a minority share holder, it could also be 50/50. They share profits, cost and risk. In an equity strategic alliance, two or more firms have equity, shares the costs, profits, The firms involved could be suppliers, or other players in the supply chain. Most firms go into equity strategic alliance to share the risk, learning curve and experience of their partners in the alliance, e.g, Heinze and Kraft. A non equity strategic alliance involves contracts with suppliers, distributors and other players in the supply chain. There is no sharing of ownership. Global strategic alliance involves firms from different countries. Global strategic alliance can also be with a foreign government. Global cross- border alliances are formed for various reasons. It could be as a result of import barriers and other reasons.

When firms go into alliance, they become bigger, stronger, they enjoy economics of scale. There is cooperation amongst the partners as they learn from each other. The alliance is more competitive. It is not all roses, there are challenges in implementing global alliances. Alliances could also be with small or medium size enterprises overseas. there are guidelines for successful alliances. There are also implementing strategies and challenges for emerging markets. There are lots of issues and obstacles in global strategic alliances such as suppliers, distributors, manufacturing facilities, carriers, brokers and other intermediaries. It can be complex and complicated. Most firms in view of these chooses to E-Commerce as an entry strategy. Strategic implementation can be difficult to implement because of differences in culture and other variables. Successful alliance requires committed partners, compatible and trust worthy partners with complementary skills, products and ..

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Explain and Discuss.

1 Reasons why cross border strategic alliances are formed.

2 Cross border strategic alliances are difficult to implement. Why?

3 Discuss the different types of strategic alliance.

Please include references. Thankks!