Definition of Strategic alliance:
Agreement for cooperation among two or more independent firms to work together toward common objectives. Unlike in a joint venture, firms in a strategic alliance do not form a new entity to further their aims but collaborate while remaining apart and distinct.
A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The agreement is less complex and less binding than a joint venture, in which two businesses pool resources to create a separate business entity.
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.
How to use Strategic alliance in a sentence?
- A strategic alliance is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project.
- Strategic alliances allow two organizations, individuals or other entities to work toward common or correlating goals.
- You may need to make a strategic alliance with another business if you think it can help out your long term goals.
- The strategic alliance engaged in by the market players was of vital importance for us to understand in order to succeed.
- A strategic alliance agreement could help a company develop a more effective process.
- We formed a strategic alliance that we all thought would benefit both companies in the future and make us rich.
Meaning of Strategic alliance & Strategic alliance Definition