Preview

Strategic alliance

Best Essays
Open Document
Open Document
1346 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategic alliance
Unsuccessful Equity Strategic Alliance Strategic alliance can be an advantage for companies. However, strategic alliance is hard to be managed as it caused a high number of failures. There are many factors causing the failure of strategic alliance. Different in perception, different in culture, trust issues and many other that cause alliances to fail (Robynhenderson101's Blog 2011). There are many companies that have failed in strategic alliance, one of them are Suzuki Motor Corporation and Volkswagen AG. These two companies will be discussed more in this part of the report about their alliance. Suzuki Motor Corporation is a Japanese automobile company. Volkswagen AG is a Germany automobile company. In 2008 to 2010, there are a crisis in the industry of automotive, which cause automotive company to loss billions dollar of money including Volkswagen (Uaw.org 2014). Therefore, to save up the money, Volkswagen and Suzuki combined strategically to reduce the amount of loss and the cost of production. Volkswagen also interested in entering the market to India. Because Suzuki have the strength in the India market for their expertise in small cars, Volkswagen approach them and have goals to compete in India (Indian Express 2009). From this strategic alliance, they also have goals to produce efficient fuel car by hybrid and electric cars. Not only in India, they are also willing to develop in building low cost and fuel-efficient car in Thailand. However, due to several factors, Volkswagen and Suzuki have failed in strategic alliance. The main factor why they ended the strategic alliance is the different of demands. According to the news, in the press conference the Chief executive vice president said that they have different in demands (Business.nikkeibp.co.jp 2011). Which means their goals are different. According to the Chief executive vice president, it seems the technology that Volkswagen have no purpose in the eco-friendly project. Which is one of the reason why
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Strategic Operations
    • 1458 Words
    • 6 Pages

    Strategic Operations

    THE GOAL OF THIS COURSE is to understand how strategic operations decisions impact the performance of the firm. The key will be to understand the link between the operating system configurations, the customer experience, and the financial performance of the firm. We will approach operations strategy by taking a holistic view that incorporates competitive strategy, financial evaluation, and the customer experience. Operations strategy is a plan for developing assets and configuring processes such that the resulting competencies maximize value for stakeholders. We focus on decisions and challenges that many firms face: assessing the attractiveness of a firm’s operating system from an investor/external perspective and a management/internal perspective. Then we study building competencies in-­‐‑house…

    • 1458 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Strategic Alliance
    • 2256 Words
    • 10 Pages

    Strategic Alliance

    How do we establish a strategic alliance in terms of confidentiality agreements, termination agreements, and negotiation strategies?…

    • 2256 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    RSM490 Case 2 Yiseul Oh

    • 2579 Words
    • 9 Pages

    RSM490 Case 2 Yiseul Oh

    drivers of successful strategic alliances as well as the risk and problems as seen in through…

    • 2579 Words
    • 9 Pages
    Best Essays
    Read More
  • Good Essays

    Ward's Soft Identity Theory
    • 1704 Words
    • 7 Pages

    Ward's Soft Identity Theory

    Soft Identity Theory In his book ‘Religion and Human Nature’, Ward makes an interesting emergentist argument in presenting what one may call a non-reductive identity theory of the soul, or, as he refers to it, a ‘soft identity theory’.32 Normally, it is reductionists who identify the mind with the brain, yet here we have a theologian (who is also a philosopher) identifying the mind/soul33 with the brain and nevertheless maintaining a non-reductive position. How so?…

    • 1704 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Essay on Strategic Alliance
    • 741 Words
    • 3 Pages

    Essay on Strategic Alliance

    1. This strategy seeks to enhance the long-term competitive advantage of a company by forming alliance with its competitors.…

    • 741 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Vw - Car Giant to Watch
    • 454 Words
    • 2 Pages

    Vw - Car Giant to Watch

    There are bigger threats for VW though. Toyota’s reliability seems to have a huge effect on VW’s sales as seen above. Also cheaper lower-end cars in Asian and Indian market such as Subaru and Kia, are better known over there compared to VW which is still not popular. So bad is the market over there that VW is lucky to sell 20,000 cars a…

    • 454 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Relationships with a Small Number of Strategic Partners
    • 813 Words
    • 4 Pages

    Relationships with a Small Number of Strategic Partners

    A strategic partnership was defined by David Teece as a web of agreements whereby two or more partners share the commitment to reach a common goal by pooling their resources together and coordinating their activities. Robert M. Grant (2005) also put it that strategic partnership makes “a wide array of opportunities become available". For example, Atlas Copco in Nigeria is in a strategic relationship with two companies which are R.T. Briscoe Plc and United Technical and Allied Services Ltd (UTAS) which is a division of chellarams Plc. These two companies are given service and customer support and of course credit facilities by Atlas Copco while they in turn help to promote the sales of Atlas Copco products and at the same time improving their own business. “The business synergy between besides giving UTAS and “R.T Briscoe” the franchise to market products from Atlas Copco across the country also equip them with the necessary International technical training and knowledge needed to serve growing Atlas Copco clientele in Nigeria”. One of the basic advantage Atlas Copco Nigeria is enjoying from this relationship is the few sales people on its pay roll because in the absence of this relationship, Atlas Copco will need to have a great number of sales people on its pay roll (increase in cost) to cover the markets where R.T. Briscoe and UTAS are helping to cover.…

    • 813 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Case Study Audi
    • 6513 Words
    • 27 Pages

    Case Study Audi

    •The brand confusion: There is a risk that the different brands of the Volkswagen Group start to compete against each other since they are increasingly launching the same market segments. Our recommendation to avoid this issue is to stop the expansion of Volkswagen with…

    • 6513 Words
    • 27 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    A Case Study of Toyota Motor Thailand Company Limited
    • 3916 Words
    • 16 Pages

    A Case Study of Toyota Motor Thailand Company Limited

    The intent of this report is to analyse the strategic management of Thai automotive industry, focus on a case study of Toyota Motor Thailand Company Limited. The relevant data and information are selected, evaluated and analysed. The results clearly suggest that this industry is very attractive to investors. The firm should compete with offensive strategies. With strong strategic capabilities and opportunities in the industry, the firm has ability to compete in exist markets and also can expand to the new markets in the near future. The firm is now the leader among other principle players, such as Isuzu, Honda, and Nissan. Therefore, it can be said that Toyota Motor Thailand will be the winner in Thai automotive industry in the future. Furthermore, its dominance is likely sustainable, because it has ability to manipulate the industry the way it want, such as the environmentally friendly and fuel-efficient vehicles. However, if see in the 3 scenarios it can be concluded that Optimistic scenario, supports from government and other environmental factors may lead to the higher growth rate in the future. Because the firm has higher strategic capabilities, it will still be the winner in the future. Likely scenario, the market growth is unpredictable because the environmental factors are uncertain. The market growth may steady at the same level. All principle players will maintain their status, so, the firm will still play as the leader. Pessimistic scenario, there will be a very high competitive industry. Principle players could improve their strategic capabilities to compete in the market. The firm may lose the leader position in the future.…

    • 3916 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Knowledge Transfer Methods in Strategic Alliances
    • 5947 Words
    • 26 Pages

    Knowledge Transfer Methods in Strategic Alliances

    References: Ahn, P.T.T. et al., 2006. Knowledge Acquisition from Foreign Parents in International Joint Ventures: An…

    • 5947 Words
    • 26 Pages
    Powerful Essays
    Read More
  • Best Essays

    Strategy - Alliance Perspectives
    • 2016 Words
    • 9 Pages

    Strategy - Alliance Perspectives

    This summary provides a review of the strategic management. . It will first develop an understanding of relational and alliance perspectives, secondly it will demonstrate an awareness of the literature covered and finally highlight the implications.…

    • 2016 Words
    • 9 Pages
    Best Essays
    Read More
  • Good Essays

    Successful Strategic Alliances: How to Prepare for an Alliance
    • 729 Words
    • 3 Pages

    Successful Strategic Alliances: How to Prepare for an Alliance

    Andrew Brown and Phil Hogg, Special to Financial Post | May 16, 2012 4:42 PM…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    kritik
    • 439 Words
    • 2 Pages

    kritik

    They have found a relative failure about their firm “Porsche”. As I understand, Porsche had a competition with the Volkswagen and they wanted to buy some of this firm. Oppositely, situation acted in a very different manner, so that, in finally Volkswagen had bought Porsche. This was an enormous strategic fault.…

    • 439 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Operation Research
    • 28654 Words
    • 115 Pages

    Operation Research

    Run Run Shaw Library Copyright Warning Use of this thesis/dissertation/project is for the purpose of private study or scholarly research only. Users must comply with the Copyright Ordinance. Anyone who consults this thesis/dissertation/project is understood to recognise that its copyright rests with its author and that no part of it may be reproduced without the author’s prior written consent.…

    • 28654 Words
    • 115 Pages
    Powerful Essays
    Read More
  • Good Essays

    4.2: What Is Different In Strategic Alliances?
    • 1474 Words
    • 6 Pages

    4.2: What Is Different In Strategic Alliances?

    To see the importance of an alliance, there will be a short comparison of strategic alliances and traditional relationships. Seven distinctions may emerge: Alliances explore the wellsprings of costs and afterwards minimise them. Traditional relationships push costs to others. This is the result of traditional win-lose negotiating the zero-sum game. Alliances concentrate on a definitive client, and partners give value that clients pay for. Traditional relationships perspective value as an expense, where there is a perceived trade-off. Low-cost offers typically win, bringing about procedure and product issues. Alliances comprehend losses, bottlenecks and variability. They improve frameworks to accomplish…

    • 1474 Words
    • 6 Pages
    Good Essays
    Read More

Related Topics