• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Global strategic alliances are working partnerships between companies across national boundaries and increasingly across industries.

Extracts from this document...

Introduction

Global strategic alliances are working partnerships between companies across national boundaries and increasingly across industries. Strategic alliances are the easiest entry into becoming an international company. Global strategic alliances may become full global partnerships, were two companies, while maintaining their national identities, develop a common, long-term strategy aimed at world leadership (Rosensweig, p.142-144). In today's highly competitive environment, alliances present a faster and less risky route to globalization. One such global alliance is the marketing agreement formed by the parent companies of the Manchester United English football (soccer) team and New York Yankees US baseball team. On Wednesday, February 7, 2001 a press conference was held in Manhattan to announce the joining of two of the biggest forces in world sports. Manchester United, the richest football club in the world, and the New York Yankees, the most popular sports team in the US, formed a strategic alliance of the most powerful brands in sports. Through this joint-marketing deal, the teams will share market information, develop sponsorship and joint promotional programs and sell each other's licensed goods (Sandomir, p. D1, D5). "I believe we have a lot to offer each other in terms of synergy and cross-promotion," YankeeNets, the company that owns the Yankees, chairman Harvey Shiller said at the news conference to announce the deal (Sandomir, p. D1, D5). Neither money nor equity is changing hands, just expertise. ...read more.

Middle

(Grant, p. A2, A7) It appears that Manchester United has the most to gain from the alliance, primarily access to the richest market in the world, the US. The Yankees have won four of the last five World Series Championships, and United hopes to capitalize on the Yankees glory to gain a foothold in the vast American market, where soccer is growing in popularity at school level but remains relatively untapped commercially. ''Their executive staff knows North American markets better than anyone. Soccer has developed dramatically in the US over the last 10 years and we believe there is a market for Manchester United among football fans of all ages," says Kenyon (Sandomir, p. D1, D5). In the United States football remains primarily of interest to young women and Latin Americans, the latter forming the biggest minority population in New York City, the prime viewing area of the YES network, where Manchester United games are televised. While there appears to be very little interest in American baseball in the UK, there is still much to be gained by the Yankees from this alliance. The soccer team also owns its own television network, MUTV, which can begin to show Yankee games after working out an agreement with Major League Baseball front offices. This will help to lead to increased interest in the American game. And though baseball can never hope to reach the popularity of football in England, just being connected to the Manchester United brand will spark curiosity in the fans. ...read more.

Conclusion

117-121). While each firm wants a global dominance in the sport arena, Manchester United's market is football while the Yankees market is baseball. This distinction will reduce direct competition while their common goals will help to produce effective and efficient collaboration. Is the alliance of Manchester United and the Yankees a successful one? It is probably much too early to tell. Manchester United, a publicly held company, saw it's stock price increase 13 percent to $1.65 the day the deal was announced (Hoebom, A2, A6). Today the stock price is $2.40. It is difficult to say to what degree, if any, this alliance has on the increased stock price, but obviously, this immediate increase was due to the incredible excitement in England the day the deal was announced. While today the agreement appears to be little more than an opportunity for each side to get its foot in the door in terms of international business, both sides hold out hope for greater things. Effective global alliances are usually very slow in the making but can be among the best mechanisms to implement strategies in global markets (Bartlett, p. 222). With what each of these organizations have accomplished both on the playing field and in the boardroom, it would be difficult to bet against this global strategic alliance being a great success for both. As Oliver Butler, editor at Soccer Investor said, "People are talking about it as if it's a massive deal. It's not. It's a very small deal between two very big clubs though it could be the beginning of a beautiful friendship." (bbc.co.uk) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Advertisements section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Advertisements essays

  1. McDonalds Promotional Objectives The companies' main objective is to be the family restaurant ...

    McDonald's youth promotions ensure that children will continue coming to McDonald's even when they are older. Local Promotions As well as national promotions, individual restaurants sometimes offer local promotions by supporting local schools, athletic teams, and fund raising. Advertising cooperatives have also been formed which allows them to pool the advertising resources.

  2. Viral Marketing

    or the growth would fizzle out. 4. Exploits common motivations and behaviors A marketing strategy that is built upon common behavior and motivation is usually successful. Greed, hunger to be popular, loved and understood are powerful motivators and clever marketing campaigns exploit them. 5. Reflect the Brand The campaign should be a rigid fit with the values and personality of the brand.

  1. The principles of marketing.

    half of it then they will be curious to find out what it is. With this they will buy the product. Overall everyone will be curious to see how it works so they will go and buy it. I will also put something in a magazine as shown in appendices

  2. Olympic Games Event

    In 1995 the Olympic Co-ordination Authority translated the Guidelines into an Environment Strategy to focus on three key performance areas: Conservation of Species; Conservation of Resources and Pollution Control. Essentially this enabled a certain redefining of the Guidelines to what was felt to be achievable and practicable.

  1. As the Marketing Manager of this ice cream firm, CALMOR, I have written this ...

    my questionnaires were aged between 18-30 and some did not fall within these two groups. The reliability of the geo-demographic segmentation is questionable as the questionnaires were only asked of a small number of people within one supermarket in Middlesex.

  2. Identify a narrative subject depicted by both Gitto in the Arena Chapel and Duccio ...

    His father lent money to people, this was frowned upon. His father was known to be greedy. Scrovegni commissioned the Chapel as a means to make up for his fathers wrongs. It was repaying or giving something back to the community, and to restore the families name.

  1. Hollywood chewing gum in Cyprus, why has its market share fallen.

    The reason we have divided the survey into two groups is because we need to grasp the opinion of the ultimate consumer and at the same time understand the distributor's point of view. * Our population for the first questionnaire will be all the people who buy/use chewing gums.

  2. Sponsorship Today

    Stella Artois sponsorship of CH4 movies. As companies sponsor more sports broadcasts rather than live events, broadcast sponsorship is set to overtake sports as the most valuable sector of the market. Sponsorship of rock concerts and festivals is increasingly common. Sponsorship of the arts Has less appeal that broadcast or sports sponsorship but Government initiatives such

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work