Global strategic alliances

The first 200 words of this essay...

Introduction:

"Nike, the largest producer of Athletic footwear in the world, does not manufacture a single shoe. Gallo, the largest wine company on the earth, does not grow a single grape. Boeing, the pre-eminent aircraft manufacturer, makes little more than cockpits and wing bits (Guinn, 1995, P1)".

These companies, like many other companies nowadays have entered into global strategic alliances for building collaborative relationship with customers, competitors, suppliers and a variety of other institutions for the need to pursue multiple source of competitive advantage and creating customer value. Many companies shifted strategic focus and began to embrace both competitive and co-operative strategies (Bartlett & Ghoshal, 2000). Here comes one question: Why the alliance is strategically important to win the competition and how it influences local operations. On the one hand, financial pressures know how with shortening product innovation lifecycle and time strains leaves the company without enough resources and time to fill the gap by developing itself alone, on the other hand, acquisition proves expensive and inefficient, even it will lead to lots of redundancies, that is simply because that when you make an acquisition you not only buy advantages but also have to buy the defects. In