Sun Oil Corporation and YPF Global Strategic Alliance

Global strategic alliance (GSA)   is defined as a corporate agreement between two companies from different countries (Hill & Jones, 2009). For the exploration of Isla de Los Estados, the joint venture structure will be appropriate for both the firms. In this type of GSA, both companies will share resources appropriately to gain maximum benefits. The joint venture structure of GSA would include different characteristics. The first characteristics is that profit and loss would is shared equally as both companies have expertise in exploration and has sufficient resources (Steers & Nardon, 2006). The duration would also be fixed for the GSA structure because of limited resources of liquid petroleum gas under the permafrost of the island. The long time partnership may affect the interest of Sunoco.
Sunoco brings various core competencies and advantages to GSA. The commitment of company towards health, environment and safety is one of the core competencies Sunoco brings to the GSA.   The senior management of Sunoco represents its values and behavior towards the success of the organization that would also be effective to increase the effectiveness of the GSA (Sunoco, 2010). The other core competency that Sunoco brings the GSA is effective outsourcing and messaging services that causes increases in the direct communication with the end-users that is essential for the survivability of the GSA.   Some strategic advantages Sunoco brings in the GSA causes an increase in the effectiveness of the joint venture structure. The strategic alliance with the Sunoco opens avenues entering into the foreign market for YBF. Through the strategic alliance with Sunoco, YBF can enter in the market of USA on the other hand Sunoco may expand its business operation in Argentina. It also provides advantages of the shared fixed cost and shred risk that would be effective to increase the profits for both the organization from the...