Strategic Alliance

Strategic Alliance Concept: A Strategic Alliance is an association between two or more companies that gather resources and know-how to develop…

Strategic Alliance Concept

A Strategic Alliance is an association between two or more companies that gather resources and know-how to develop a specific activity, create group synergies or as growth strategic option. This type of association can be used to conquer a new market (geographic or sectoral), acquire new competences or gain critical dimension. Is, therefore, an alternative to other forms of development as are the fusions and acquisitions and the organic development. Strategic Alliances are, generally, established between competitor companies or that produce complementary products or services. The activity’s sectors where have had particular relevance are the technological areas’ sectors.

The main advantages of Strategic Alliances as business development source are, on one hand, the access to new markets without heavy investments and with reduced risks and, on the other hand, the use of commercial and technological synergies. It presents, however, some potential risks as for example the sharing of know-how with competitors and the loss o strategic flexibility.

A variation of Strategic Alliances are the joint-ventures, these last characterized by the fact of being verified the share of property of a new company.

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