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Companies in various industries form strategic alliances to enhance resources, capabilities, and competitiveness. Strategic alliances are formal agreements between two or more companies working together towards a common goal. They may involve contractual agreements without formal ownership ties. Joint ventures are collaborative agreements with shared ownership, establishing an independent entity jointly owned and controlled by multiple companies. Joint ventures are durable yet risky compared to other arrangements. Many alliances don't meet expectations, with estimates as high as 60%.
