Entry Mode: Strategic Alliances in Chile

Entry Mode: Strategic Alliances in Chile

Chile’s main development driver of globalization is innovation and the adoption of new technology that will enhance productivity and national competitiveness . A strategic alliance is a relationship whereby two or more parties work together to achieve the strategic goals of the business. The partners can offer complementary technology, management skills or connections within the region which can create new opportunities. They may be involved in any part of the value chain like product development, joint manufacturing, distribution or marketing . Finding a partner in the host country can help the speed to market. The alliance is willing to cooperate with the company in the home country; however they do not wish to create a separate joint owned company. This strategic relationship is created with the goal of supporting a long term competitive position of the firm .

Companies can enter into this relationship with organizations in complementary industries. For example, a UAV company should consider partnering with a company that sells rescue equipment as a way to gain excess to contacts that would require UAV equipment. Discovery Air, a specialty aviation company, recently purchased a Chilean helicopter company called SAL. Although this may not be a strategic alliance, its purpose is to leverage the skills of the management team at SAL to drive additional growth in Chile and South America . This just supports the fact that there is the potential for relationship building within the region. Canadian companies can learn a lot from strategic alliances, by working together to capitalize on the opportunities for technology services in Chile.

UAV equipment is a modern technological product aimed at offering a very specific service. Entry of this product into Chile will involve very calculated steps and the concurrence of many experts in the areas of marketing, public relations,