A Strategic Alliance is a significant long/term partnership and collaborative agreement entered into by two or more companies to pursue a set of agreed upon critical goals while remaining (legally) independent organizations. These collaborations can come in many shapes and sizes, including contractual and equity forms. It normally is a synergistic arrangement whereby the participating organizations each bring different strengths and capabilities to the alliance.
Main motives for the formation of strategic alliances can be organizational, economic, strategic and political. Companies may form Strategic Alliances with a wide variety of players: customers, suppliers, competitors, universities or divisions of government. Through Strategic Alliances, companies can improve competitive positioning, gain entry to new markets, supplement critical skills and share the risk or cost of major development projects.
The twentieth century way forward for organizational management and development might encompass strategic alliances and coalitions or partnerships in order to synergize for exploitation of the future opportunities. This could be a forward looking marketing concept that may bail out a lot of organizations that might be on the verge of brink due to excessive competition and external threats that are coupled with modern technology. Survival for the fittest might be the name of the game.
Strategic, Alliance, synergy, coalitions and competition.