Business Alliances
A global perspective is necessary for businesses since it assists in the process of identifying the prevailing threats and opportunities in the contemporary marketing arena. In spite of the fact that it is necessary to safeguard a business against global competition, it is vital to note that firms should seek ways and means of penetrating into international marketplace. For example, Barnes and Nobles bookstore entered into strategic alliance with Starbucks way back in 1993. The rationale behind the partnership was to put in place in-house coffee shops, an alliance that would benefit both parties. As a matter of fact, there are myriad of opportunities that are usually created when businesses penetrate into the global market.
Financial risk sharing
The financial risks associated with running an international enterprise can be reduced if strategic alliance is adopted. For instance, firms will usually end up sharing any risks associated with financial losses incurred in a strategic alliance partnership. Hence, no single firm will fully shoulder the burden of such risks in case of an eventuality (Harper 2001, p.30).
Eradicating the political obstacle
Strict legal regulations coupled with inhospitable political environment might indeed hinder the marketing success of a new product being introduced into a new market. The best solution for this hindrance is the formation of strategic alliance which will take care of new products of a foreign firm which will be introduced through a partnering firm already located in a foreign country.
Attaining competitive advantage and synergy
Both competitive advantage and synergy will be readily generated in a strategic alliance business setting. Through joint efforts, each firm in an alliance will be in a position to gain these two elements in a much easier way. For instance, it is quite cumbersome to create a distinct image of a new brand in the market and also convince consumers on the same.