These comments reflect both the opportunities and the threats involved in international joint ventures (IJVs) in the CIS. Those opportunities include abundant natural resources and cheap land, a highly educated and low-cost workforce with high quality basic research skills, and a huge, relatively un.... readmore
There is no doubt that many difficulties arise in cross-border alliances in melding both national and corporate cultures of the parties, in overcoming language and communication barriers, and in building trust between the parties over how to share proprietary assets and management processes. Some ba.... readmore
Effective global alliances are usually tediously slow in the making but can be among the best mechanisms to implement strategies in global markets. hi a highly competitive environment, alliances present a faster and less risky route to globalization. It is extremely complex to fashion such linkages,.... readmore
1. To avoid import barriers, licensing requirements and other protectionist legislation. Japanese automotive manufacturers, for example, use alliances such as the GM - Toyota venture, or subsidiaries, to produce cars in the United States so as to avoid import quotas. -
2. To share the costs a.... readmore
It is no longer an era in which a single company can dominate any technology or business by itself. The technology has become so advanced, and the markets so complex, that you simply can't expect to be the best at the whole process any longer.
Strategic alliances are partnerships between two .... readmore
1. Companies “go international” for many reasons, including reactive ones, such as international competition, trade barriers, and customer demands. Proactive reasons include seeking economies of scale, new international markets, resource access, cost savings, and local incentives.
2. Internat.... readmore
The process of strategic formulation for global competitiveness is a daunting task in the volatile international arena and is further complicated by the difficulties involved in acquiring timely and credible information. However, early insight into global developments provides a critical advantage i.... readmore
In addition, strategic choices at various levels often are influenced by cultural factors, such as a long-term versus a short-term perspective. Hofstede found that most people in countries such as China and Japan generally had a longer-term horizon than those in Canada and the United States.78 Where.... readmore
As with McDonald's, international strategic formulation requires a long-term perspective. Entry strategies, therefore, need to be conceived as part of a well- designed, overall plan. In the past, many companies have decided on a particular means of entry that seemed appropriate at the time, only to .... readmore
The strategic choice of one or more of the entry strategies will depend on (1. a critical evaluation of the advantages (and disadvantages) of each in relation to the firm's capabilities, (2. the critical environmental factors, and (3. the contribution that each choice would make to the overall missi.... readmore