Strategic Alliance

1. Strategic Alliance

2. Definition

Agreement for cooperation among two or more independent
firms to work together toward common objectives. Unlike in a
joint venture, firms in a strategic alliance do not form a new
entity to further their aims but collaborate while remaining apart
and distinct.

3. Types of strategic alliances:

Cartels
Franchising
Licensing
Outsourcing

4. Advantages

Shared knowledge
Opportunities for growth
Costs
Access to resources
Access to target markets
Economies of Scale

5. Disadvantages

Sharing
Creating a Competitor
Opportunity Costs
Uneven Alliances
Foreign confiscation

6. End/ Development

7.

Natural End
Extension
Exclusive Continuation
Takeover of Partner