Strategic Alliances and Globalization Essay Example | Topics and Well Written Essays - 500 words

Strategic Alliances and Globalization - Essay Example The purpose of this paper is to explain the key advantages and disadvantages of strategic alliances in the globalization of products and services. When two companies join forces they are able to share resources and exploit the expertise of each company. Corporations formed strategic alliances for a variety of reasons. In the service industry many companies are forming strategic alliances in order to outsource business functions oversee. A prime location for the exporting of customer service contracts is the nation of India. A business function that is responsible for the formation of many strategic alliances is marketing. A lot of strategic alliances take the form of marketing alliances. There are four types of marketing alliances: product or service alliances, promotional alliances, logistic alliances, and price collaboration (Kotler, 2003). A product or service alliance occurs when one company licenses another to produce its product. This strategy has the benefit of reducing overal l costs of producing the product or service. In a promotional alliance one company carries out the promotion of another company. Logistic alliances involve one company offering logistical services to another. In pricing collaboration alliances two companies provide combined package discounts.