(a) Is joint venture the only way to enter into a strategic alliance? Alliances are not new, but in the competitive landscape, distinguishing features are emerging. Identify these features. (b) What are the key success factors for managing an alliance? In the light of these key success factors, identify the reasons for the termination of this successful joint venture.
Hero Honda joint venture formed in 1984 is a classic case of strategic alliance involving the Indian company Hero Group and Japanese automobile major Honda Motorcycle. The alliance has been terminated with the entire 26% stake of Honda Motorcycle in the venture bought by the Hero Group. Selling out of the venture gives the Japanese company the freedom to go it alone in the world's second largest market for two-wheelers.
(a) Is joint venture the only way to enter into a strategic alliance? Alliances are not new, but in the competitive landscape, distinguishing features are emerging. Identify these features.
(b) What are the key success factors for managing an alliance? In the light of these key success factors, identify the reasons for the termination of this successful joint venture.
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