The-definition.com

Definition

Strategic Alliances

Strategic alliances are distinguished from joint ventures because the companies involved do not take an equity position in one another.

Strategic alliance is a partnership between two or more firms that is developed to achieve a specific goal. In many instances, strategic alliances are partnerships that exist for a defined period during which partners contribute their skills and expertise to a cooperative project.

Alliances with suppliers, partners, contractors, and other providers that allow partners in the alliance to focus on what they do best, farm out everything else, and quickly provide value to the customer.

Share it:  Cite

More from this Section

  • Planning
    Planning is a function of management that involves defining goals, establishing strategies ...
  • Licensing or franchising
    Licensing or franchising which are similar approaches involving one organization giving ...
  • Liquidity Ratios
    Liquidity ratios measure the short-term ability of the company to pay its maturing obligations ...
  • Value chain analysis
    A perspective in which business is seen as a chain of activities that transforms inputs ...
  • Organizational capabilities
    Skills (the ability and ways of combining assets, people, and processes) that a company ...