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Companies across various industries form strategic alliances and partnerships to enhance their resources and capabilities, boosting competitiveness in both domestic and international markets. Strategic alliances are formal agreements between two or more companies working together towards a common goal. These partnerships may involve contractual agreements without formal ownership ties, and joint ventures that entail shared ownership. Joint ventures establish an independent corporate entity jointly owned and controlled by two or more companies, lasting longer but carrying more risk. Many alliances fall short of expectations, with up to 60% failing to meet their objectives.
