Define the concept of intercultural strategic alliance and list both advantages and disadvantages.
An intercultural strategic alliance is a partnership between two organizations from different parts of the world. An example of this would be an alliance between a Japanese corporation and a Corporation in the United States. In an intercultural strategic alliance organizations contribute resources and expertise for the purpose of a specific mutually beneficial goal.
Some of the advantages of intercultural strategic alliances are:
- They allow for the pursuit of business opportunities in markets that may be otherwise inaccessible.
- They lower the barriers to market entry.
Some of the disadvantages of intercultural strategic alliances are:
- They may be difficult to implement due to cultural and language barriers.
- They may lead to over-dependence on a foreign partner in order to successfully operate.