JBL Co. Ltd. is an Indian Company engaged in courier services. It has commanding business in domestic sector. Now the company desires to enter in the global market for which it requires strategic alliance with US based c

By properly utilizing a strategic alliance, companies can expand their product and service offerings substantially, without the usual corresponding investment in staff, equipment, and facilities. Strategic alliances are motivated by considerations such as cost reduction, technology sharing, product development, market access etc., Strategic alliances have objectives similar to those of conventional acquisitions but such alliances can prove to be less expensive than acquisition, if they are structured properly this is because if two or more companies pool their resources they can secure their joint objectives more easily and economically. There are many specific advantages of a global strategic alliance: Instant market access, or entries into a new market at outstanding pace. Exploit new opportunities to strengthen position in a market where firm already has a foothold. Increase sales. Gain new skills and technology. Develop new products at a profit. Share fixed costs and resources. Enlarge distribution channels. Broadening of business and political base. Gain greater knowledge of international customs and culture. Enhance image in the world marketplace Disadvantages of Strategic Alliances There are also some inevitable disadvantages of strategic alliances which organisations must consider: Weaker management involvement or less equity stake. Fear of market loss due to local partner's presence. Less efficient communication. Poor resource allocation. Difficulties in attaining targets in time. Loss of control over important issues such as product quality, operating costs, employees, etc.