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What are the four types of alliances?

Three Different Types of Strategic Alliances Joint Venture. A joint venture is a child company of two parent companies. Equity Strategic Alliance. Non Equity Strategic Alliance.

What is an alliance agreement?

An alliance agreement, sometimes called a joint venture agreement or a strategic alliance agreement, between two independent entities that agree to work together, without forming a jointly owned entity, to compete for and work on a project or series of projects.

What is the purpose of forming alliance?

A company may enter into a strategic alliance to expand into a new market, improve its product line, or develop an edge over a competitor. The arrangement allows two businesses to work toward a common goal that will benefit both.

What are the basic requirements for entering into an alliance?

Examining each of the five strategic criteria in depth provides insight into how the strategic value of alliances can be leveraged. Critical to a business objective. Competitive advantage and core competency. Blocking a competitive threat. Future strategic options. Risk mitigation.