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Strategic alliance

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Strategic alliance
Unsuccessful Equity Strategic Alliance Strategic alliance can be an advantage for companies. However, strategic alliance is hard to be managed as it caused a high number of failures. There are many factors causing the failure of strategic alliance. Different in perception, different in culture, trust issues and many other that cause alliances to fail (Robynhenderson101's Blog 2011). There are many companies that have failed in strategic alliance, one of them are Suzuki Motor Corporation and Volkswagen AG. These two companies will be discussed more in this part of the report about their alliance. Suzuki Motor Corporation is a Japanese automobile company. Volkswagen AG is a Germany automobile company. In 2008 to 2010, there are a crisis in the industry of automotive, which cause automotive company to loss billions dollar of money including Volkswagen (Uaw.org 2014). Therefore, to save up the money, Volkswagen and Suzuki combined strategically to reduce the amount of loss and the cost of production. Volkswagen also interested in entering the market to India. Because Suzuki have the strength in the India market for their expertise in small cars, Volkswagen approach them and have goals to compete in India (Indian Express 2009). From this strategic alliance, they also have goals to produce efficient fuel car by hybrid and electric cars. Not only in India, they are also willing to develop in building low cost and fuel-efficient car in Thailand. However, due to several factors, Volkswagen and Suzuki have failed in strategic alliance. The main factor why they ended the strategic alliance is the different of demands. According to the news, in the press conference the Chief executive vice president said that they have different in demands (Business.nikkeibp.co.jp 2011). Which means their goals are different. According to the Chief executive vice president, it seems the technology that Volkswagen have no purpose in the eco-friendly project. Which is one of the reason why

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