Strategid Marketing Alliance
...or, in some industries, the very survival of firms in the 1990's and beyond. Morgan and Hunt (1994 p. 20) maintain that "to be an effective competitor (in the global economy) requires one to be an effective cooperator (in some network)." However, Sherman (1992) notes that although the formation of strategic alliances between U.S. companies and international partners has grown by nearly 27% annually since 1985, roughly one-third of all such alliances have failed. Ohmae (1989) contends that one reason for this may be that most firms are "nearsighted" with "their field of vision dominated by home country" stakeholders and that everyone else "is simply part of ‘the rest of the world’" (p. 38).
As the globalization of business increases so does the likelihood that at least some members of a firm’s marketing network will be foreign controlled. By definition, these global alliances are almost always cross-cultural relationships. To be successful in such cross-cultural marketing relationships firms must understand and develop the skills necessary to deal with both the real and the perceived cultural differences that often dominate such relationships. Failure to understand the salient attitudes and behaviors toward working with other cultures can lead to "millions of dollars in wasted negotiations, lost sales, and calamitous customer relations" (Sandhusen 1997, p. 170). For example, Quaker Oats Company originally experienced numerous setbacks in its strategy of expanding its presence in Europe. The company's attempt to enter the continent's largest consumer market, Germany, by forming an alliance with Schwartauer Werke, the leader in the German confectionery market, resulted in substantial financial losses (Fedor and Werther, 1995).
Cross-cultural marketing relationships present distinct challenges for firms in today's multicultural global economy. Hunt and Morgan...
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