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Yakvenalex [24]
1 year ago
12

While we covered mergers and acquisitions in this unit, let’s turn our focus to strategic alliances. what are the three types of

strategic alliances? what are the advantages/disadvantages of each?
Business
1 answer:
vovangra [49]1 year ago
8 0

The three types of strategic alliances are Joint ventures, Equity Strategic alliances, and Non-Equity Strategic alliances. The advantages and disadvantages of strategic alliances are reduced costs & risks and potential competitors respectively.

There are three types of strategic alliances. A joint venture is a corporation that was created by two parent companies. It is kept up by distributing assets and equity according to a legal contract.

When one corporation buys shares in another company, a strategic equity partnership results. An agreement to share resources without forming a separate firm or allocating equity is called a non-equity strategic partnership.

Partners may grow up quickly, create cutting-edge customer solutions, break into new markets, and pool important resources and experience through strategic alliances. And this is a game-changer in a business environment that prizes speed and creativity.

Its drawbacks include a lack of managerial engagement or equity interest, apprehension about market insulation because a local partner is present, ineffective communication, and inefficient resource allocation.

To learn more about strategic alliances refer to:

brainly.com/question/17250330

#SPJ4

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