The Global Logic Of Strategic


The topic under review is strategic alliances. This particular form of non-equity alliance between firms in the same industry (competitors) is becoming an increasingly popular way of conducting business in the global environment. Many different reasons of why such alliances are occurring have been recognised. These include: the increasing globalisation of the world's economy resulting in intensified global competition, the proliferation and dispersment of technology, and the shortening of product life-cycles. This critique will use Kenichi Ohmae's viewpoint on strategic alliances as a benchmark for comparison. Firstly, a summary of Ohmae's article will be provided. Secondly, in order ...

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only way forward for all companies competing globally. "Globalisation mandates alliances, makes them absolutely necessary." (Ohmae, 1989). The author has supported this viewpoint, that globalisation makes strategic alliances necessary as vehicles for customer-orientated value, with four issues facing today's companies: 1. The Californization of Need; 2. The Dispersion of Technology; 3. The Importance of Fixed Costs, 4. Dangers of Equity.
The first issue, described by Ohmae as the Californization of Need, refers to the convergence of customer needs and preferences and the fact that the national identity of many high-quality products has virtually disappeared. Secondly, companies can no longer maintain a leadership position based solely on superior, advanced technology. This results because of the increasing number of critical technologies embedded in the majority of products, therefore, no one can keep the technology out of the hands of competitors around the globe. ...

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The author highlights the fact that not one scholar focuses on the study of inter-company relationships. Ohmae believes that, given the importance of joint ventures and strategic alliances in today's competitive global environment, this is an area where future research is required about what makes successful corporate relationships.

LITERATURE REVIEW
During the 1980s and 1990s, there has been numerous writing on the topic of strategic alliances, strategic technology partnering and corporate co-operation. The subjects range from why strategic alliances occur (Johansson (1995) Murray and Mahon (1993) Hagedoorn (1993)) to determinants of successful/effective strategic alliances ...

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PAPER DETAILS
Added: 4/18/2006 01:36:09 PM
Category: Miscellaneous
Type: Premium Paper
Words: 2591
Pages: 10

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