How to Extend Market Presence Through Strategic Alliances: The Case of Mastercard Saudi Arabia

Abstract

As strategic alliances increasingly become a tool to expand international market presence, attention should be paid to understanding how these alliances are formed and the aspects that aid or motivate their formation. This case study of a prominent international business operating in the financial industry of Saudi Arabia, Mastercard, reveals the insights needed to understand strategic alliances in the context of a global company operating in a Gulf state. By doing qualitative content analysis on Mastercard’s strategic partnership formation in Saudi Arabia, it is found that technological abilities, strategic alignments in identifying gaps in the financial ecosystem, creating solutions to fill these gaps, and extending the partnership network are all means of strategic alliance formation. The practical insights reveal that managers should invest in technologies that foster innovation with partners, identify and align with market trends and gaps, and apply multi-partner networks for enhanced innovation or extended resource leverage. Theoretically, the study supports the resource-based theory, highlights similarities with the network theory and confirms the significance of social capital dimensions in overcoming market access barriers. Future research can examine the evolution of alliances over time, explore the impact of emerging technologies on alliances, conduct comparative regional studies, and analyse post-partnership outcomes.