Business Strategy: Alliance

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In order to remain competitive in business world, it is important for a company to choose right business strategy. One of the growing trends for business today is the increasing number of strategic alliances since alliance is now considered as a great driver of business growth. According to Peter Drucker, “Alliances are where the real growth is.” He made the argument that supports the use of alliances rather than merger and acquisition. Since the alliance is not costly and truly helps business to grow. I agree with Peter Drucker that a strategic alliance is good way to achieve real growth, especially in a global market, however, mergers and acquisitions could also be considered in certain situations to create growth for business as well. There are three main topics I use to analyze whether to agree or disagree with his statement which are about competitive advantages, uncertainty of global market and types of resources.
Firstly, alliances provide sustainable competitive advantage. In order to grow in global market, companies might have to face a lot of pressures from their existing competitors in terms of price, quality, and service. It is impossible for business to be good at everything. Alliance is a good business tool that helps firms to meet its objectives by combining resources with the partners and gain access to certain sets of resources, while at the same time; it gives flexibility to adapt quickly and allows switching partners. Alliance enables business to access

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