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Companies in various industries are forming strategic alliances and partnerships to enhance their resources and capabilities, and improve their competitive position in both local and global markets. A strategic alliance is a formal agreement between multiple firms to collaborate towards a common goal. These partnerships may involve contractual agreements but typically do not include formal ownership. Joint ventures, on the other hand, are collaborative agreements that entail shared ownership and the establishment of a separate corporate entity jointly controlled by the participating companies. While joint ventures are more enduring, they also carry higher risks compared to other types of alliances. Many alliances fall short of expectations, with some studies suggesting that up to 60% may not achieve their intended outcomes.
