Global Corporate Strategy Essay Example | Topics and Well Written Essays - 500 words

Global Corporate Strategy - Essay ExampleIn an example, two airline companies might create a strategic alliance through bringing up their resources together to create a punishing advertising website in order to develop a to a greater extent effective marketing process. Strategic alliance is more effective in companies that have closely related products (Vedder, 2008). One of the major differences between strategic alliance and other joint ventures is that the business that forms an alliance form independent. Alliances involve transfer of technologies, economic specialization and sharing of different expenses and risks. Types of strategic alliances include Joint ventures, law strategic alliances and global strategic alliances (Kleymann & Serist, 2010).Unlike strategic alliances where businesses involved in alliances remain independent, merging involves dissolving of both businesses activities to form a iodin entity. In mergers, businesses combine their transactions and form a sing le and more powerful business. With increase level of globalization that is being experienced currently, the level of competition has increased tremendously as multinational companies which have a powerful pecuniary base have been fit to invest in different countries. Airline industry has been one of the most hit organization an scenery that has made two or more airline industries coming together to form a strong organization (Kumar, 2012). One of the benefits of merging is increased competitiveness of the organization formed due to increased financial resources, technical resources and human resources. In addition, the level of competition between the companies forming a merger makes it easy for the accompany formed to make effective decision without fear of intense competition. Some of examples of successful mergers include go Am and National alliances and Northwest Airline which merged with Delta to form one of the largest airline industry (Hecker, 2009).Acquisitions on the other hand, involve a corporate action by a