Hi, need to submit a 2000 words paper on the topic The Importance of Strategic Alliances in Business.

Hi, need to submit a 2000 words paper on the topic The Importance of Strategic Alliances in Business. Consider the example of a company in the United States that intends to shift its manufacturing operations to a factory located in China owing to the lower manufacturing costs in the latter country. In order to set up such operations, the company would have to secure resources such as labor, material and additional resources including electricity, water, and government support in order to be able to conduct operations successfully. Despite having intense knowledge of beginning operations, the company would be at a disadvantage owing to issues related to language, culture and local legislation to name a few. Without local support and help, the company would be in no position to engage local manpower and educate them on the production process (Michael Y. Yoshino, U. Srinivasa Rangan, 1995). There would be no provision to pay the taxes and understand the laws of the land for compliance unless there was local assistance. One of the solutions in this regard is to set up a subsidiary and employ local people to do the above-mentioned duties.

However, a question now arises when the company is in a market that is dominated by local manufacturers. In such a situation, it would be difficult for the company to establish itself without harnessing local resources including competitors. Strategic alliances are business relationships that are born out of such necessities that enable companies and enterprises to gain a competitive advantage through the forger of partnerships with a partner thereby providing access to the latter’s resources, capital, labor and most importantly, the markets (John J. Wild, Kenneth L. Wild, and Jerry Han, 2004). Strategic alliances have for long been deemed as instruments that provide mutual benefits allowing all participants to grow and expand quickly by using complementary resources and capabilities for the benefit of the alliance and the companies involved as a result.

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