Question

List any five characteristics of strategic alliances.

Answer 1

Strategic alliance refers to an agreement between two or more separate companies that share resources and take projects that are beneficial for the alliance companies. Five characteristics of strategic alliances are:
i) Strategic alliance blocks the threat due to competition. Creating a strategic alliance with a competitor stops competition.
ii) It increases core competency and improves the market position of the alliance companies.
iii) It opens new markets in various geographical regions and helps in expansion and capturing new customers.
iv) The business control is shared between the two or more companies that enter into strategic alliance.
v) There is joint contribution of resources and mutual dependence between the alliance companies.