Question

What is the importance of strategic alliance partners having compatible goals in forming an alliance?

Answer 1

Q: What is the importance of strategic alliance partners having compatible goals in forming an alliance?

A: Strategic alliances are formed with a view to enter into new markets, have strategic tie-ups to ensure larger competitiveness, market position and market share, share the cost and risk of taking on major projects which are high cost and risk intensive, improve branding and visibility and make a highly attractive offer to consumers. For this purpose, two completely independent and separate organisations join forces and come together to perform mutually agreed and mutually beneficial common objectives which would be essential to be compatible. If the common objectives or goals are incompatible then the challenges will become insurmountable and the alliance will be short-lived and crash in a little time and will lead to an immense loss of resources. Thus, it has to be compatible goals which are mutually beneficial and agreed in advance.