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Strategic alliance: An introduction

Hello readers, today I will be writing about strategic alliance. Strategic alliance is a situation whereby two or more companies share resources and activities in order to pursue agreed upon objectives.

The alliance is formed to meet a short-term goal or a long-term goal or both. This will depend on the needs of the companies involved. The responsibility of each company must be clearly stated. A strategic alliance may be a formal or an informal agreement. Strategic alliance has its advantages, some of it will be discussed below.

It enables a business to enter a new market without the high cost of acquiring a local company. It saves the business money. It also allows each company to remain independent. Each company is allowed to maintain its corporate culture.

It also enables the company involved to take advantages of opportunities at a faster rate. Additional knowledge is gained by each company involved as they will both provide each other with knowledge. 

Thank you for reading my article. Keep checking out my blog regularly, cheers!

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