Essay on "Cross-Border Alliances Are Defined as Strategic Partnerships"

Essay 8 pages (2325 words) Sources: 15

[EXCERPT] . . . .

Cross-border alliances are defined as strategic partnerships which are formed between two or more firms, which are from different countries with the purpose of pursuing the mutual interests by sharing their capabilities and resources. They give an organization flexibility to commit on fewer resources and activities and build a bridge to the present resource of the firms. It also brings about a competitive advantage such as a reduction of risk and access to new technologies, market development and low cost resources Cherian, Flores, & Srinivasan, 2008()

Cross-border alliances help firms to be more efficient in their manufacturing and distribution processes. They also help to gain access to new talent in terms of human resources and new technology. It creates new opportunities, which the company can exploit while ensuring that issues such as barriers of entry are controlled.

Cross-border alliances are driven by globalization where in the face of difficult economic times, many organizations are forced to find new markets to expand to in order to keep revenues and profits high. Many firms across the world are using cross-border alliances in order to maintain and strengthen their market position. It is often seen as a fast and efficient way to expand into the new market, and to incorporate new technologies. However, there is no assurance of the success of the cross-border alliance. Such alliances often fall short of the objectives and goals which are stated. Some of these failures can be explained by market factors in play while others can be explained by issues related to human resource and activities which are associated with management of cultural diversity in the organizations.

When creating cross-border alliances, the organization need to choose from four distinct options. The first is the portfolio option where the companies maintain separate cultures. The second is the blending approach where the organization chooses the best elements from each culture and merges them. The third is the new creation approach where the companies create a new culture that fits the new venture. The last approach is the absorption approach where one culture is made to be legit then the members of the other culture are expected to be assimilated into the new culture Tjosvold & Leung, 2003.

An example of the absorption approach is when Pfizer acquired Warner Lambert. Pfizer kept its culture and the Warner Lambert employees had to adopt the Pfizer culture.

Online marketing response

Online marketing is also known as web marketing, e-marketing or webvertising. It is a form of promotion whereby products and services are advertised on the internet. For the store to be successful in internet marketing, it needs to tie together the creative and technical aspects of the internet which include design, advertising, development and sales Kotler & Keller, 2012.

This involves the placement of advertising media on the various stages available such as email marketing, banner ads on particular websites, search engine marketing, and web 2.0.

Banner advertisements are placed on third-party websites or blogs in order to drive traffic to the company's website and thus increase product awareness. Search engine marketing involves promotion of websites by increasing traffic to their websites by increasing their visibility in search engines. Web 2.0 includes social media such as Facebook, Twitter, LinkedIn and blogs. It involves placing advertisements on these platforms and also gaining attention through them. Email marketing involves sending promotional messages through emails.

There are many advantages of online marketing. One is that it is a targeted method of advertising. The advertisements can be targeted to particular geographical locations or a particular niche which is the target market of the store Nezamabad, 2011.

Additionally, online marketing is usually inexpensive as compared to traditional methods of advertising such as billboards, radio and TV advertising. It also has a wider reach for this low cost Kotler & Keller, 2012()

Another major advantage of internet marketing is that it allows the advertiser to get detailed statistics on the company in terms of views and clicks thus the advertiser is able to gauge the effectiveness of their campaign Horn, 2011()

Online marketing, however, has several limitations. One is that there are many outright scams or false promotions which make it difficult for buyers to differentiate the legit advertisements from scams. A good example is the emails that people receive claiming they have won millions of shillings which are usually huge scams.

Having explored the advantages and disadvantages of online marketing, it can be seen to be worthy to be used in the store in order to boost sales and to gain competitive advantage against the new companies or organizations that are building strip malls.

Benefits of list segmentation to direct marketers

For organizations that make use of direct marketing, there are huge benefits that are accrued from the use of list segmentation. One benefit is that list segmentation helps the organization to track sales easily. When direct marketing is done using list segmentation, it is possible to track where sales are coming from and thus be able to change the marketing technique as required to suit the organization Weinstein, 2004()

Secondly, list segmentation helps in targeting. By placing the list in segments, the organization is able to determine which segment of the list is responsive to what type of marketing. In this way, the company can be able to do AB testing where they have various segments of the market and different marketing techniques. They then know which of the marketing efforts is more responsive and thus adjust their marketing efforts to use the particular technique that is more successful.

List segmentation eases the process of follow-ups. In most cases, the sale will not be concluded in the first contact with the client and therefore, the sales personnel need to follow up with the client in order to seal the deal. List segmentation helps to generate sales through follow ups by making it possible to track which segment bought which item and to know which marketing technique will be more effective Meisner, 2006()

A good example of list market segmentation and its advantages can be seen in a company that sells red and blue balls. The company can segment their list in order to test different marketing techniques for the different types of balls. In terms of follow up sales, through list segmentation, the company will be able to know which people bought which product and what they can then target them to purchase the other product. For example those who bought red balls can be targeted to purchase the blue balls and vice versa.

Why do marketing managers need research and what is its role in decision making?

In marketing, research is the process of gathering information about a particular item or market in order to create new marketing techniques or adjust the current ones to be more effective. Research is a critical component for decision-making in any organization Kotler & Keller, 2012.

There are various types of research which are required to make a particular marketing decision. The table below shows the marketing decision to be made and the type of research required.

Marketing decision

Types of research

Target markets

Sales, customer characteristics demand for product, purchase behavior, market size, and website traffic

Product

Product development, brand name selection, packaging, brand recognition, brand preference, and product positioning.

Distribution

Online sales, shipping options, distributor interest, retail store siting

Promotion

Advertising recall, sales promotion response rates, advertising copy testing, public relations media placement, sales force compensation, traffic studies for outdoor advertising

Pricing

Optimal price, discounts, price elasticity analysis

External factors

Legal environment, social and cultural trends, competitor analysis

Source: KnowThis LLC (2012)

There are two major types of market research. The first is primary research and secondary research. Primary research helps to provide information by monitoring the levels of sales and measuring the effectiveness of existing marketing efforts. It also helps to improve service quality and tools for communication which are being used. Secondary research on the other hand consists of collecting data that already exists about the market or product then using it to perform a situational analysis that helps to determine how the marketing efforts should be conducted KnowThis LLC, 2012()

Good research, for example, suggests multiple solutions for the products of the organization and the marketing managers can then choose the approach with the least risk and the one which is most effective. Marketing research also helps to build a strong foundation for the organization which helps it to remain sturdy and, therefore, marketing decisions can be made to be more concrete in the sense that they do not encounter unexpected challenges along the line of their implementation. Research also helps marketing decisions to be made to stand up to the competition and other existing internal and external pressures thus making the marketing efforts to be more successful. Research also provides the necessary information for marketing managers to help them make decisions. Thus it improves the effectiveness of the decisions made.

Marketing research helps to identify customers and competitors and to profile them in… READ MORE

How to Reference "Cross-Border Alliances Are Defined as Strategic Partnerships" Essay in a Bibliography

Related Essays:

Strategic Alliances in Hospitality Sector Research Proposal

Strategic Alliances in the Hospitality Sector

The proposed study will be guided by the following research question: "How can strategic alliances provide a competitive advantage, improved performance and profitability for… read more

Research Proposal 16 pages (4558 words) Sources: 14 Topic: Recreation / Leisure / Tourism

---

Are Indian-Israeli Relations Useful for India's National Interests? Thesis

Indian-Israeli Relations Valuable to India's National Interests?

Today, India stands at an important juncture in its historical development. Following its independence from Britain in 1948, the years that followed have… read more

Thesis 26 pages (9235 words) Sources: 6 Topic: Asian History / Asia

---

Business: Internet's Increasing Impact Dissertation

Business Scenario

[Type the document title]

The internet has impacted nearly every form of daily life. This includes everything from the way that people interact with each other socially (through… read more

Dissertation 45 pages (17664 words) Sources: 28 Topic: Business / Corporations / E-commerce

---

Military Strategy Thesis

Australia's Domestic and Foreign Policy Approach to Confronting Terrorism
Terrorism has emerged as one of the most pressing concerns in foreign
policy and international relations. With the inception of guerilla… read more

Thesis 15 pages (4433 words) Sources: 16 Style: APA Topic: Government / Politics

---

Cities in International Politics Research Proposal

City Diplomacy: The Increasing Role of Cities in International Politics

Over the past several decades, there has been a tendency for cities to be involved internationally and this is stated… read more

Research Proposal 69 pages (18927 words) Sources: 1+ Topic: Government / Politics

---

View 100+ more related papers  >>