Two heads are better than one. This application of this maxim is part of the daily interactions within the Academy. It also applies in several other situations, including commercial transactions. One of the main advantages of a strategic alliance is that it shortens the time it takes to achieve several goals. Regardless of the type of goals the two companies share, the partnership paves the way for an effective goal. If Company A`s goal is to reach a wider audience, it`s best to suspect and set goals with a company with a large fan community. Or if several companies want to reduce costs, it`s best to partner with companies with the latest technology and equipment needed to produce other organizations. The effectiveness of the goal in these situations depends on choosing the best possible partner. Sometimes cooperation is the best strategy, but be sure to build a strategic alliance agreement. If your company decides to share resources and knowledge and help each other in a project, a strategic alliance agreement consolidates your plans by setting the contractual terms of both parties. All materials and property contained in this Agreement remain the intellectual property of the Party making such items.
Companies are making drastic efforts to gain a competitive advantage over their competitors. Some companies buy their smaller competitors to clear the ground. As with other companies, they opt for cooperation in order to achieve a common goal. Companies that engage in this symbiotic relationship engage in a strategic alliance. Most of the organizations that are committed to this particular alliance have several reasons. Some partnerships want to facilitate entry into a new sector, while others want to create an improved range of products. Ultimately, however, both companies want to gain a competitive advantage and preserve it. The agreement of possible projects and the early definition of roles in the partnership are a sign of an advantageous strategic alliance.
The decision on the possible methodology on which companies can work will also begin discussions on resource allocation. The discussion begins with the question of which party will be responsible for which task. It will also identify priority tasks. Both Parties shall be given a period of three months prior to the date of termination of this Agreement to propose an extension or enter into a new Strategic Alliance Agreement where deemed necessary. The parties agreed to form a strategic alliance. Therefore, no employer/employee relationship is established or implied. Upon conclusion of this Agreement, all prior agreements between the Parties shall be deemed invalid, in writing or in writing. One of the potential drawbacks of promoting new alliances is the misinterpretation of the benefits that each company can bring.
One party may develop an exaggerated understanding of what the other party can offer. Suppose Company A expects Company B to provide more resources and equipment, but Company B is not able. The exaggerated expectation of Company A may be due to a misunderstanding of Company B`s statement. A simple misunderstanding could lead to the end of the partnership. Both parties remain independent contractors for the duration of this strategic alliance agreement and have the rights and competences as such. One strategic alliance that has passed the test of time is the partnership between Starbucks and Barnes & Noble. Barnes & Noble faced the problem that all physical retail businesses faced. The advent of online stores has been a threat to most stationary stores, regardless of their product. In the midst of all this, the bookstore decided to connect with coffee, which was a staple in most areas – Starbucks. . .