1. STEPHANIE JOHANA GASTELBONDO CALDERÓN
COD: 1520102028
ALEXI SAMPER
COD: 1520111046

2. INTRODUCTION
Forms of foreign market entry strategies
move along a of choice factors such as
control, risk, investment intensity, and
potential profitability, starting from an
export activity and continuing with
licensing (franchising, foreign
manufacturing, contract production) and
various forms of FDI (portfolio investments,
JVs, M&A, and greenfield investments),
and concluding with strategic alliances

3. CONCEPT
Co-operative relationships between two
companies even competitors that have decided
to share resources to undertake a
specific, mutually beneficial project and achieve
mutual goals while remaining independent
organizations and maintain theirs autonomy .
• Less involved and less permanent than a joint
venture.

4. CHARACTERISTICS OF ACTUAL
STRATEGIC ALLIANCES
Strategic alliances are currently gaining in
popularity, partly due to the characteristics
of the agreement (namely maintaining
independency while pooling forces together
to achieve a common goal) and partly due
to market globalization conditions that
require access to resources and
networking structures of a much larger
scale and scope than ever before.

5. FACTORS PROMOTING ALLIANCES
Strategic alliances help companies:
• To find new market entries.
• To shaping of industry evolution.
• To develop a more effective process.
• To expand into a new market or develop
an advantage over a competitor.
• Learning and applying new technologies.
• To rounding out a product line.
• To among other possibilities.

6. ALLIANCE PROCESS

7. TYPES OF STRATEGIC ALLIANCES
Collaborative agreements between
businesses can take a number of forms
and are becoming increasingly common as
businesses aim to get the upper hand over
their competitors.
The main types of strategic alliances are
listed below:
• Profit strategic alliances
• Nonprofit strategic alliances

8. • Joint Ventures • Franchising
• Outsourcing: The 1980s was the decade where
outsourcing really rose to prominence, and this trend
continued throughout the 1990s to today, although to a
slightly lesser extent.
• Affiliate Marketing: Affiliate marketing has exploded
over recent years, with the most successful online
retailers using it to great effect. The nature of the internet
means that referrals can be accurately tracked right
through the order process. Amazon was the pioneer of
affiliate marketing, and now has tens of thousands of
websites promoting its products on a performance-based
basis.
• Technology Licensing: This is a contractual
arrangement whereby trade marks, intellectual property
and trade secrets are licensed to an external firm. It’s
used mainly as a low cost way to enter foreign markets.
The main downside of licensing is the loss of control

9. • Product Licensing: This is similar to technology licensing
except that the license provided is only to manufacture and sell
a certain product. Usually each licensee will be given an
exclusive geographic area to which they can sell to. It’s a
lower-risk way of expanding the reach of your product.
• R&D: Strategic alliances based around R&D tend to fall into
the joint venture category, where two or more businesses
decide to embark on a research venture through forming a new
entity.
• Distributors: If you have a product one of the best ways to
market it is to recruit distributors, where each one has its own
geographical area or type of product. This ensures that each
distributor’s success can be easily measured against other
distributors.
• Distribution Relationships: This is perhaps the most
common form of alliance. Strategic alliances are usually formed
because the businesses involved want more customers. It’s a
win-win agreement – the bank gains through offering a great
deal to their customers, the insurance company benefits

11. ADVANTAGES
Strategically it is a strong alliance when is composed with the
best in each field and the resulting solution is stronger than any
of the part.
• Get instant market access, or at least speed your entry into a
new market.
• Exploit new opportunities to strengthen your position in a
market where you already have a foothold.
• Increase sales.
• Gain new skills and technology.
• Develop new products at a profit.
• Share fixed costs and resources.
• Enlarge your distribution channels.
• Broaden your business and political contact base.
• Gain greater knowledge of international customs and culture.
• Enhance your image in the world marketplace.

12. DISADVANTAGES
There are some inevitable trade-offs to consider:
• Weaker management involvement or less equity
stake.
• Fear of market insulation due to local partner's
presence.
• Less efficient communication.
• Poor resource allocation.
• Difficult to keep objectives on target over time.
• Loss of control over such important issues as
product quality, operating costs, employees, etc.

13. EXAMPLES
For example, an oil and natural gas
company might form a strategic alliance with
a research laboratory to develop more
commercially viable recovery processes. A
clothing retailer might form a strategic
alliance with a single clothing manufacturer
to ensure consistent quality and sizing. A
major website could form a strategic alliance
with an analytics company to improve its
marketing efforts.

15. WHY SKYTEAM?
Ease of travel
As you make your way from country to country and city
to city, our 19 member airlines are dedicated to help
make your journey smoother and simpler.
Global coverage
With over 15,000 daily flights to 1,000destinations
in 187 countries, the SkyTeam network offers you more
destinations and more connections from the best hubs in
the world. Air France has routes from America to
Europe, Delta has domestic flights in USA
while KLM is the airline of the Netherlands,
countries like Norway, Sweden and other
uncommon routes.
Example If I want to travel from Paris to NY
and then need to go from NY to Houston in
the first journey I use Air France and Delta
in the second one.

16. The 10 most important SkyTeam benefits:
1. More Miles: Earn Miles on the flights you make, exchange these
with any of the other SkyTeam partners.
2. More lounges: Access to more than 400 member lounges
worldwide.
3. Guaranteed reservations: Reservations made 24 hours before
departure.
4. More flights: More than 16,000 flights to more than 840
destinations worldwide.
5. More fares: SkyTeam partners offer a ‘SkyTeam Around the World
Fare’ for extensive travel around the globe.
6. Easy connections: Convenient connections to many more
destinations worldwide.
7. Enhanced check-in procedures: Save time with streamlined
check-in procedure.
8. Single check-in: Check in only once when connecting to flights
with other partners.
9. Standardized level of quality: Same high level of quality on all
participating airlines.
10. Extensive information and reservation network: Access more
than 2,100 SkyTeam ticket offices worldwide, or visit the SkyTeam
partners' websites.

17. Milly, Fred and James are all The Joint Venture
naturopaths located in different However over the course of their
areas around a city. They relationship as Milly, Fred and
decide to get together to help James get to know and trust each
each other with promotion. other they start to discuss new
They do a number of things opportunities and they see the
together. They share a stand at potential of offering natural
an expo, they run a shared therapies treatments to rural
advertisement in a Natural locations. So they decide to set up
Therapies magazine, they even a Joint Venture to open a mobile
do some of their purchasing natural therapies clinic to visit rural
together to reduce costs. All towns.
these are alliance strategies