Ways of entering abroad are the means for a company to extend its services to a non-domestic market. The strategic alliance is a type of cooperation agreement between different companies, such as joint research, formal joint ventures or minority stakes. [33] The modern form of strategic alliances is becoming increasingly popular and has three distinctive features:[34] Acquisition has increased because it is a way to gain more market power. Market share is generally influenced by market power. As a result, many multinationals use acquisitions to gain the greatest market power, which require the purchase of a competitor, supplier, distributor or business in a highly related industry, in order to enable basic competency and competitive advantages in the marketplace. [25] An international licensing agreement allows foreign companies, exclusively or not exclusively, to produce an owner`s product in a specified market for a specified period of time. In a rotating management structure, key positions in the hierarchy alternate between companies. Each company assigns one person for its mandate. This structure is popular when an alliance partner comes from a less developed country.

According to Cullen, this type of management helps to train local management in a way that transmits technology and know-how to the community. However, some sectors benefit more from globalization than others, and some nations have a comparative advantage over other nations in certain sectors. To create a successful global strategy, leaders must first understand the nature of global industries and the dynamics of global competition, the international strategy (i.e., internationally dispersed subsidiaries act independently and act as if they were local companies, with minimal coordination on the part of the parent company) and a comprehensive strategy (leading to a multitude of business strategies and a high degree of adaptation to the local environment). In principle, there are three essential differences between them. First, it is the degree of participation and coordination of the Centre. In addition, the difference relates to the degree of product standardization and responsiveness to the local business environment. The last is that the difference is related to the integration of policies and competition measures. To achieve such benefits, many considerations must be incorporated into the choice of a partner for a joint venture or strategic alliance. Choosing a strategic alliance or joint venture partner is very important and can be very difficult.

Understanding the goals of potential partners is inherent in selecting partners. On the one hand, a potential partner must pursue complementary strategic objectives. A business will not be successful if the objectives are contradictory, but the objectives do not necessarily have to be the same. Thus, the alliance between Yahoo and eBay yahoo offers an advertiser and allows eBay (as well as its subsidiaries like PayPal and Skype) to access Yahoo`s large customer base.