Advantages Of A Strategic Alliance Essay example

1224 Words Dec 9th, 2015 null Page
When referring the advantages of a strategic alliance and the disadvantages that come along with it, it 's helpful to know what it means. A strategic alliance is a relationship formed between two or more businesses which allows each to achieve mutual objectives, where it wouldn 't be realistic for them to achieve on their own accord. The partners working in a strategic manner continue their status as separate entities, equal shares of control and benefits’ from the partnership, and the continuation of contributions made towards the alliance until it is severed. These strategic alliances most often form where global marketplaces between businesses are based in different regions throughout the world, where one may have accessibility to materials or resources which the other doesn 't but both can benefit from this tremendously (Gray).

Advantages of Strategic Alliances
• Given the capabilities, it’s possible to harness the individuals’ strengths within the organization. This can lead to increasing the companies networking which will provide an abundance of local contacts and communities/stakeholders whom would be most beneficial to their overall success.
• . They share the responsibility when deciding whether to execute or develop a new service or program; as-well-as providing reduced-cost opportunities made with precision and expertise for each contributing organization. The limitations factor into the equation when the organization’s liability is the scope of the project.
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