The trends in business world indicate that strategic alliances have not always yielded desired results. Mention the risks and problems that need to be analysed to pave way for the success of strategic alliances.

The following are the risks and problems resulting in the failure of Strategic Alliance that need to be analysed: (i) Clash of cultures: Cultural problems consisting of language, egos, chauvinism, attitude, etc. (ii) Lack of Trust: Results in despondent relationship, misunderstandings, doubt and suspicion. (iii) Lack of clear goals and objectives: Dis-similar objectives, inability to share risks, lack of trust, etc lead to an early alliance demise. (iv) Lack of coordination between management team: It can prove disruptive, especially at instances where companies remain competitors in spite of their strategic alliances. (v) Difference in Operating procedures and attitude among partners: The problem may occur where a company may deliver its goods behind schedule or do a bad job producing the goods or services. (vi) Relational Risk: where partner firms lack commitment to thje alliance, their opportunistic behavior causes undermining the prospect of alliance. (vii) Performance Risk: Sources of performance risks may be environmental factors, government policy change, war, epidemic, lack of competence in critical area or sheer bad luck, etc. (viii) Livelihood of a future local or Global Competitor: A partner might use the alliance to test a market and prepare the launch of wholly owned subsidy.