The internationalization of companies is increasingly important for them to be competitive in a globalized economy. Opening to international markets is essential for the growth of a business. For this reason, the international alliances, also known as strategic alliances, have gained strength, as they make this process faster, easier and safer.
In this sense, these alliances represent a very valuable option for companies that want to expand their business, but are unaware of the characteristics of the market and the regulations of the country they want to reach.
Next, the importance of international alliances, its types and the relevance of knowing a second language to carry them out.
importance of international alliances
This type of commercial agreement is very relevant for companies in various aspects. Next, we mention the most prominent:
Access to new technologies and innovations
By being able to enter new markets, partner companies have access to innovative technologies and marketing strategies. marketing different. Therefore, the commercial advantages of both parties increase (MasterNegocios, nd).
Improve and increase profitability
Trade agreements make it possible to take advantage of distribution and marketing channels, and optimize benefits and profitability (ConnectAmericas, nd).
Greater investment capacity
Combining strategies with another company brings many economic advantages that translate into a greater capacity for capital investment (MasterNegocios, nd).
Optimize and increase competitiveness
Having the experience and information of a partner company increases competitive advantages, since the know-how of it is a very valuable strategic resource for the business (ConnectAmericas, nd).
Access to new markets
One of the main objectives of these alliances is to have a market expansion. This is possible through a local company that knows you perfectly to achieve secure and agile growth (MasterNegocios, nd).
Types international alliances
These alliances foster business globalization. In addition, they are very varied because they adapt to the needs of each company and the characteristics of the market. The best known types are (Exportador.com, sf):
- Consortium. They are alliances between companies of the same size or characteristics.
- Franchise. It is a type of contract in which one company assigns the right to market a product or service to another, in exchange for financial compensation.
- Licenses. It is a contract where the owner of a trademark grants authorization to a third party to use said trademark.
- joint venture. They are associations of two or more companies in a common business.
- Outsourcing or outsourcing.
Importance of knowing a second language for these alliances
To successfully carry out international transactions and business, excellent communication is essential. For this reason, mastering other languages is a requirement, in addition to having the following advantages (Mapfre, 2021):
- Help reach more customers.
- Improves communication and business relationships (networking).
- Provides access to multiple investment projects.
International alliances allow and facilitate the achievement of a common goal for the benefit of all parties. Through these alliances, with a local company, risks can be minimized and the business goals, thus guaranteeing the commercial success of the business.
- exporter.com. (nd). Modalities of Strategic Alliances to access International Markets. Exporter's Journal.
- ConnectAmericas. (nd). Advantages of commercial alliances.
- Master Business. (nd). Strategic alliances in international business. Illustrious College of Lawyers of Madrid.
- mapfre. (2021). The importance of learning a language for your business. Mapfre Retirement Channel.