Strategic Alliances
A strategic alliance is an agreement between two or more parties to pursue a set of agreed upon objectives need while remaining independent organizations. This form of cooperation lies between M&A and organic growth.
Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.
Read more about Strategic Alliances: Terminology, Typology, Stages of Alliance Formation, External Links
Famous quotes containing the words strategic and/or alliances:
“The practice of S/M is the creation of pleasure.... And that’s why S/M is really a subculture. It’s a process of invention. S/M is the use of a strategic relationship as a source of pleasure.”
—Michel Foucault (1926–1984)
“An alliance is like a chain. It is not made stronger by adding weak links to it. A great power like the United States gains no advantage and it loses prestige by offering, indeed peddling, its alliances to all and sundry. An alliance should be hard diplomatic currency, valuable and hard to get, and not inflationary paper from the mimeograph machine in the State Department.”
—Walter Lippmann (1889–1974)