Definition of Business alliance:
An agreement or relationship between independent companies with related objectives that is defined for specific purposes and is often used to reduce costs and improve customer service. Collaboration is usually handled by a team of members of each company and is held together through an agreement that gives each company an equal share of risk and opportunity. An example of this is the marketing program shared by Walmart and Procter & Gamble.
These are the five basic types.
- Business alliance agreements to sell additional products or services
- Specific agreements for jointly developing and selling specific business solutions
- Some geographical agreements to jointly market products and services in specific geographic areas
- Investment agreement to raise funds for joint ventures
- Joint venture agreement that divides control, profits and losses in a particular company.
Meaning of Business alliance & Business alliance Definition