The reality is that many business Alliances fail.Whether due to cultural differences, poor management, bad planning, or some combination of factors, it's an expensive way to learn hownotto do something.The idea of Alliances is as old society itself, dating back to when weaker tribes banded together to fight stronger ones, or Cain and Abel colluded to cheat at poker.Alliances are an important strategy to obtain parity with competition or even leap-frog them.

All of this is to say that Alliances need to be done right the first time.This is why they need to be managed at the corporate level.These aren't experiments, or tentative explorations into new territory.These are strategically designed to fundamentally alter the course of a company or even set the initial course itself.The entire organization is usually affected by the success or failure and significant resources and commitments are typically needed.The risk of failure is high, and the cost of that failure can be devastating.

When going global, a company needs to deal with extended and more complex supply chains, new suppliers, country level regulatory issues, different customers with their associated needs and preferences, and even the simple fact of the company's scope increasing dramatically.Every variable the company has dealt with in the past is now multiplied by the number of areas, cultures, and governments involved in globalizing their business. It's not much different from the transition from childhood to adulthood.

what's your opinion?