In a synergistic strategic alliance, which is comparable to a horizontal complementary strategic alliance at the corporate level, companies pool some of their resources to achieve economies of scale.
What does the term "strategic alliance" mean?
- A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom.
- Compared to a joint venture, which involves two companies pooling resources to form a new business organization, the arrangement is less intricate and legally enforceable.
- Strategic alliances are as follows: This joint venture strengthens a key business strategy, develops a competitive edge, and deters rivals from entering a market.
- It enables various businesses to accomplish more as a group than they could have separately.
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