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

Global Corporate Strategy - Essay Example In an example, two airline companies might create a strategic alliance through bringing up their resources together to create a strong advertising website in order to develop a more 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 remains independent. Alliances involve transfer of technologies, economic specialization and sharing of different expenses and risks. Types of strategic alliances include; Joint ventures, equity strategic alliances and global strategic alliances (Kleymann & Seristà ¶, 2010). Unlike strategic alliances where businesses involved in alliances remain independent, merging involves dissolution of both businesses’ activities to form a single entity. In mergers, businesses combine their transactions and form a single and more powerful business. With increased level of globalization that is being experienced currently, the level of competition has increased tremendously as multinational companies which have a powerful financial base have been able to invest in different countries. Airline industry has been one of the most hit organization an aspect 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 company formed to make effective decision w ithout fear of intense competition. Some of examples of successful mergers include Pan 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