What are important considerations that will result in a successful global strategic alliance between two countries?
What will be an ideal response?
There are five attributes that are important while considering global strategic alliances as illustrated by the example of Sony and Samsung. These can be listed as follows:
1. Two or more companies develop a joint long-term strategy aimed at achieving world leadership by pursuing cost leadership, differentiation, or a combination of the two.
2. The relationship is reciprocal. Each partner possesses specific strengths that it shares with the other; learning must take place on both sides.
3. The partners' vision and efforts are truly global, extending beyond home countries and the home regions to the rest of the world.
4. When competing in markets excluded from the partnership, the participants retain their national and ideological identities.
5. The relationship is organized along horizontal, not vertical, lines. Continual transfer of resources laterally between partners is required, with technology sharing and resource pooling representing norms.
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Corporate strategy addresses issues-related decisions about entering or exiting an industry
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