Strategic Alliance









The kind of alliance made between two companies to share certain resources in order to meet certain goals or for a mutually beneficial result. They do not require so much involvement like in a joint venture where both the companies pool resources for the sake of a separate business benefit.  Here, the companies will maintain an alliance to derive a novel opportunity. Such processes will help in the growth of a company, making the company more effective. Since a common goal is set, the alliance will only turn out to be strong. The advantages which they gain through this can withstand for a long or short term of time. The type of alliance also can be formal or informal. The most important thing in such an alliance is that, the role of each member and company should be well defined in the beginning itself. Most of the time, such alliances can help the company to attain a organic growth. The biggest advantage is that they do not have to merge capital in such an alliance, thus remain independent. Also, they can give access to information which they want to give and does not have to reveal the rest. But with everything comes a risk factor. This process can be sometimes risky as it may create conflict between companies due to lack of trust.

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