Multiple alliances Multi-division companies from Japan, the USA and Europe are joining forces to create multiple strategic alliances. This kind of alliance can help to diversify risk on particularly large projects, but at the same time cause co-ordination problems if the alliance spans continents. As time progresses, the circumstances of alliances may change. Difficulties can arise when one party realizes it no longer needs the skills or knowledge of the other. A no longer needs company B's expertise.
Cultural differences can also lead to problems - especially between Asian and Western companies.
For instance, Japanese companies tend to put employee interests ahead of those of shareholders. Linked to this are problems of language. A failure to understand and adapt to a new style of management Failure to learn and understand cultural differences Lack of commitment to succeed. Government, industry and education all must play a role in the transformations necessary for alliances to prosper. Synergy One is strong where the other is weak.