MGMT 511
1) Benefits from strategic alliance provides wide variety of benefits and the
different entities take much interest in the value chain since strategic alliance
provides confidence in sharing risk. This provides much strength to both
parties as one might have the resources the other company could be missing
which will give both companies something to share and expand in business.
For example, if a larger company has all the resources for lots of research
and development and a company that has a new technology but don’t have
enough resources to expand, if these companies come together to work in
strategic alliance as they can share their resources for optimal results.
2) The choice of partner is very important in forming strategic alliance as there
are many things that need to be considered before forming strategic alliance
like understand the ultimate goal of both companies which will help
determine the end result and help in furthering the companies. Since the
resources are shared and takes a lot out of a company sometimes, it is in the
best interest of both parties to look into the company as the stability is
affected and can sometimes cause negative effects in the process. Hence the
choice of partner is very important in forming strategic alliance as the future
of the company might be in trouble
3) Joint ventures doesn’t necessarily mean that both companies have common
