Question

Difference between strategic and business alliance

Answer 1

A strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. ... Unlike in ajoint venture, firms in a strategic alliance do not form a new entity to further their aims but collaborate while remaining apart and distinct.

Answer 2

Strategic alliance

A strategic alliance (also see strategic partnership) is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. A strategic alliance will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. Typically, two companies form a strategic alliance when each possesses one or more business assets or have expertise that will help the other by enhancing their businesses. Strategic alliances can develop in outsourcing relationships where the parties desire to achieve long-term win-win benefits and innovation based on mutually desired outcomes.

Business alliance

A business alliance is an agreement between businesses, usually motivated by cost reduction and improved service for the customer. Alliances are often bounded by a single agreement with equitable risk and opportunity share for all parties involved and are typically managed by an integrated project team. An example of this is code sharing in airline alliances.