The role of transnational strategic alliances is illustrated with specific cases

1. Enhance resistance to market risks.

the ability to reduce the adverse impact of the shrinking domestic market.

2. Enterprises can maintain a very high degree of control over research, design and production decisions.

3. Maintain the scale of domestic production and continue to use domestic resources.

Disadvantages of strategic alliances for multinational corporations:

1. Market barriers (such as tariff and non-tariff barriers).

2. Exchange rate risk.

3. It is difficult to cooperate with importers and exporters.

4. The expenses are large and the costs are high.

A strategic alliance is a joint action taken by two or more enterprises to cooperate with each other, share risks and share benefits in order to achieve common strategic goals. This alliance has the following six characteristics:

First, the looseness of the organization; second, the coexistence of cooperation and competition;

third, the strategy of behavior; fourth, equality of status;

fifth, the complementarity of advantages; Sixth, the breadth of scope.

The so-called strategic alliance refers to two or more enterprises in order to achieve their own strategic objectives, through a corporate agreement or; A network-like consortium formed by means of joint organizations.

For example, the alliance between IBM, Motorola and Apple in the United States aims to develop and popularize PC chips by reducing competition and uncertainty in demand. Japan's Sony, Panasonic, Toshiba and other electrical companies have occupied a certain market share through agreements and cooperation with different positioning of various products.

In China, in August 1998, Xinke, Shanghai Radio and Television, Panda, and Guangdong Wanyan announced in Shanghai that they would become a consortium.

In May 2000, Little Swan Group, China's largest washing machine manufacturer, and Kelon Group, China's largest refrigerator manufacturer, announced an alliance.

The number of strategic alliances has proliferated over the past decade or so, and strategic alliances have become one of the most widely used strategies that allow companies from different countries to share risks, share resources, gain knowledge, and enter new markets. The strategic alliance includes not only equity joint ventures, but also non-equity agreements for production, marketing, distribution, and RIND.

There is a difference between a strategic alliance and a merger or merger. Michael Porter, an American strategic management scientist, said: Strategic alliances are"Long-term agreements between enterprises that go beyond normal transactions but do not reach the level of consolidation.

M&A means investing a large amount of money and accepting all the assets of the other party's enterprise, which is complex and risky. However, the strategic alliance emphasizes the comprehensive compatibility between partners, and it attaches importance to the common use of certain business resources between each other, and the requirements for compatibility are partial and selective.

It can form different types of strategic alliances according to different options, which has the advantages of speed, flexibility and economy, so it is favored by many enterprises.

Discuss the reasons for cross-border strategic alliances? What other motives might prompt such an alliance?

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There are many reasons why companies enter into cross-border strategic alliances, and here are a few of the main ones:1Shared resources and risk sharing:

Cross-border strategic alliances allow companies to share resources, technology, expertise, and experience, thereby reducing the cost and risk of developing new markets or undertaking new projects. By working together, all parties can invest and share risks together to optimize the use of resources. 2.

Expand markets and channels: Through cross-border strategic alliances, companies can enter new markets and channels, especially for entering foreign or emerging markets. By partnering with local businesses, companies can gain access to better market insights and channel resources, accelerating market entry and expansion.

3.Technical cooperation and innovation: Transnational strategic alliances can promote technical cooperation and innovation.

Through the technical expertise and innovation capabilities of partners, companies can work together to develop new products, technologies or solutions, accelerate innovation and maintain a competitive advantage in the marketplace. 4.Improving competitiveness and market position:

Through cross-border strategic alliances, enterprises can integrate the advantages of all parties and improve their competitiveness and market position. Through a partner's brand influence, market share, or resources, businesses can be more competitive in a competitive international market. <>

In addition to the reasons mentioned above, there are other motivations that may motivate companies to enter into cross-border strategic alliances, including:1Get Support:

In some countries or regions, companies may be encouraged or required to cooperate in the form of co-selling to promote economic development, technology transfer or other goals. Businesses may be able to gain support and preferential policies by partnering with local businesses. 2.

Achieve economies of scale: Cross-border strategic alliances can help companies achieve economies of scale. With the scale and resources of our partners, companies can reduce costs, increase efficiency, and better respond to competitive pressures.

3.Responding to market changes and trends: Enterprises may respond to rapid changes in the market and new trends through cross-border strategic alliances.

Partners may have better market insight and flexibility to work together to address market challenges and opportunities.