Strategic Alliances and Business Strategies

What are the reasons for strategic alliances?

How do strategic alliances add value and improve competitiveness?

Answer preview

Strategic Alliances and Business Strategies

Several reasons warrant the creating of a strategic alliance. Among them is the achievement of economies of scale. Companies that forge strategic partnerships bring various resources to the table, such as technology, skills, human resources, and capital. Together they can achieve that which they could not do on their own by utilizing the resources of their allies. According to Jiang, Bao, Xie, & Gao (2016), companies can save time and resources which they would have used to build the capacity on their own outside the alliance. Another reason is the division of global business risks. All businesses, especially those in the fields of research, development, and technology, face…

 

(350 words)