The Purpose of Strategic Alliances

While the strategic alliance can be an informal alliance, the responsibilities of each member are clearly defined. The needs and benefits gained by the partnered businesses will dictate how long the coalition is in effect.

 

The results of forming a strategic alliance can include allowing each of the businesses to achieve organic growth at a quicker pace than would happen if they acted alone. The partnership could provide access to resources and knowledge that one company owns but the other does not. As an example, if a small printing company allied with another that could provide access to high-speed presses, the small business could reduce their cost of production and capture more of the local printing business.

 

Strategic alliances are flexible because they avoid some of the hindrances that a joint venture would include. The two firms do not need to merge capital and can remain independent of one another. The alliance should not replace the goal of the mission of either business.

 

The results of forming a strategic alliance can include allowing each of the businesses to grow at a quicker pace than would happen if they acted alone. The partnership could provide access to resources and knowledge that one company owns but the other does not. As an example, if a small printing company allied with another company that could provide access to high-speed presses, the small business could reduce their cost of production and capture more of the local printing business. The best functioning of the deal happens when the two business practices are quite varied.