ALLIANCES

Question 1

When do alliances occur

Answer 1

Alliances occur when there is an agreement between two or more companies to pool their resources in order to undertake a specific project.

Question 2

Example

Answer 2

For example: Jaguar Land Rover wanted to enter the Chinese market and Chery wanted to gain the expertise the Jaguar Land Rover had. Jaguar Land Rover agreed to go into alliance with Chery, as to enter the Chinese market, you need to have a native of the country on the board.

Question 3

What do you sometimes need inorder to legally enter a new market

Answer 3

Sometimes you will need a local partner in order to enter a new market.

Question 4

What are the pros of alliances

Answer 4

Having a locally owned company is often a legal requirement for entering international markets

Gain local knowledge and know how

Benefit from synergies

Can be advised about cultural differences