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New Entry and Strategic Alliances

In: Business and Management

Submitted By James1222
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New Entry and Strategic Alliances 2 While conducting my research and reviewing chapter nine, it was found that alliances have become a core element of today’s business strategies in competing for a market leadership position when entering into a new industry. When a firm enters an alliance with an, arrangement it can save costs and gain access to new markets, which otherwise would not be possible for many firms. Strategic Alliance is an agreement between two companies working on the same horizontal level in the market that share resources to carry out a desired project, in both parties which have some common interest (Barney & Hesterly, 2012). In a strategic alliance, each firm maintains its autonomy while gaining a new opportunity. A strategic alliance could also help a firm develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities. This research indicates that a firm would benefit more from strategic alliance because the firm can achieve a high market share through the help of strategic alliances that would be difficult to achieve alone. Although a firm can hire its own management and staff, it would be more beneficial for a new firm to partner with a well-known firm. Then to, using the alliance method, there is an increase and other distribution networks thereby acquiring new means of distribution, decrease the manufacturing costs, plus risks of the project and product or service by through alliance partners (Barney & Hesterly, 2012). Strategic alliances also allow companies to enter new markets and to attract many…...

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