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Companies across industries form strategic alliances and partnerships to enhance their resources, capabilities, and competitiveness in global markets. Strategic alliances involve formal agreements between two or more companies to collaborate toward common goals. Collaborative relationships may involve contractual agreements, while joint ventures entail shared ownership of an independent corporate entity. Joint ventures are more durable but riskier than other arrangements. Despite their potential, many alliances fail to meet expectations, with estimates suggesting as many as 60%.
