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A strategic alliance is an agreement between two or more players to share resources or knowledge, to be beneficial to all parties involved. It is a way to supplement internal assets, capabilities and activities, with access to needed resources or processes from outside players such as suppliers, customers, competitors, companies in different industries, brand owners, universities, institutes ...
Investment: An investment alliance occurs when two companies agree to join their funds for mutual investment. Joint venture: A joint venture is an alliance that occurs when two or more companies agree to undertake economic activity together. In many cases, alliances between companies can involve two or more categories or types of alliances.
Firms create strategic alliances because it has a lack of resources or knowledge to achieve their objectives. Cooperative behavior gives a company values that can not be achieved independently. Reach stakeholders interests to reduce uncertainty inside the company. Strategic alliances can lead to new sources of revenues.
The companies come together to accomplish a specific task, such as a project or a business activity. [13] In a business network, on the other hand, the autonomy of each of the companies is preserved and no new legal entity is formed. The companies capitalize on the network to create opportunities and expand their individual business interests. [5]
A strategic partnership will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Strategic partnerships can take on various forms from shake hand agreements, contractual cooperation's all the way to equity alliances, either the formation of a joint venture or cross-holdings in each other.
Horizontal integration is related to horizontal alliance (also known as horizontal cooperation). However, in the case of a horizontal alliance, the partnering companies set up a contract, but remain independent. For example, Raue & Wieland (2015) describe the example of legally independent logistics service providers who cooperate. [4]
Corporations can issue shares to individuals, making them owners in the company, while partnerships need to add new partnership to share ownership stake. Partnerships are easier to set up and maintain
A strategic alliance is a partnership between two or more companies to pursue a set of agreed upon goals while remaining independent organizations. Subcategories This category has the following 4 subcategories, out of 4 total.