A Strategic Alliances is one when two or more entities join hands for mutual benefits. They unite to pursue a set of agreed goals. They are interdependent for these goals, but are otherwise independent. The entities share the benefits of the alliance and control over the performance of interdependence tasks and contribute on a continuing basis in one or more key strategic areas like marketing, technology etc.
A Strategic Alliance is therefore a cooperative arrangement between two or more companies when a common strategy is developed in unison and all parties develop a win-win attitude. The relationship is reciprocal, with each partner prepared to share specific strengths with each other. There is a pooling of resources, investments, and risks occur for mutual (rather than individual) gain. This could help in entering new markets, reducing manufacturing costs, developing and diffusing technology.
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| Author: Vidya 22 May 2008 | Member Level: Diamond Points : 2 |
useful article
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