Alliances

• What are alliances?

  Partnering with a business to share resources, knowledge and risk for a specific project or goal
• What are the advantages of alliances?

  • Gain local market knowledge and networks
  • Split costs and risk
  • Leading to an increase in local brand image and credibility, leading to an increase in brand awareness and customer loyalty
• What are the disadvantages of alliances?

  • Profits are shared
  • Slower decision-making due to joint control
  • Potential conflict between partners
• When are alliances most suitable?

  • In countries with strict ownership rules (e.g. China)
  • When the business doesn't have much expertise or knowledge in the new market
• When are alliances not suitable?

  • Full control is required
  • There is a misalignment of objectives between the partners
• What is an example of an alliance?

  Joint ventures