Using Spain and Canada Strategic alliances are coalitions that form by combining resources to create market advantages over competitors. These alliances can be supply chain alliances, in which a raw-material supplier will provide resources to a partner at a discounted rate compared to rates applied to nonstrategic partners. The purchasing company normally agrees to purchase a specific volume of resources within a specified time period. Strategic alliances might also include agreements between domestic and international retailers to provide a specific amount of shelf or display space in retail establishments. In return, the domestic organization will provide an equal opportunity for the international partner inside the domestic retail establishments. Describe the purpose of strategic alliances and explain what is involved with strategic implementation. Discuss the attraction for multinational corporations (MNC) to embark on cross-border strategic alliances. Are they different for emerging economies or small and medium-sized enterprises (SME)? Evaluate the common sources of incompatibility in cross-border alliances and outline some strategies to minimize them.
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