A strategic alliance is defined as two or more companies joining together for a set period of time. The businesses involved usually have similar products or services that are targeted towards the same audience. Why would you want to create such an alliance? Simple, it can help your company to gain a competitive advantage over some of your competitors by having access to different company's resources. When considering this method of growing your business there are four basic types of strategic alliance to regard.
1. Joint Ventures
A joint venture is an alliance in which both parties agree to develop a new product or service by contributing equity. They usually agree to jointly exercise control over the venture and share revenues, expenses, and assets.
2. Equity Strategic Alliance
An equity alliance describes an alliance in which two or more firms own different percentages of the company they have formed by combining some of their resources and capabilities. Such an alliance is usually created to give the companies a competitive edge.
3. Non-Equity Strategic Alliance
A non equity strategic alliance is an alliance in which two or more companies may develop a relationship to share some of their unique resources and capabilities to create an advantage over the competition.
4. Global Strategic Alliance
A global strategic alliance is described as a working partnership between companies (often more than two) across national boundaries and sometimes across industries. Often times they are formed between a company and a foreign government, or among companies and governments.
Whatever strategic alliance you feel is right for your company, be sure to thoroughly research the company or companies that you wish to align yourself with. If a compatible match can be made then go for it. The possibilities are only limited by your imagination. |
