Define and discuss the three major types of strategic alliances by using examples.

Define and discuss the three major types of strategic alliances by using examples.

Expert Solution

Below are the 3 major types of strategic alliances.

Joint venture: joint venture is created when the two parent companies together forms a one more company. Example: Company A and company B together forms a company C by sharing the thier profits.
Equity Strategic Alliance : equity strategic alliances formed when one company buys the equity percentages of other company. Examples: if the company A buys the 40% of the company B share. It is termed as equity startgic alliances.
Non equity strategic alliances: in case of non equity strategic alliances, company will not buy the equities of other companies. Rather both the companies makes a contractual agreement for combining both companies resources and capabilities. Examples : company A and Company B makes a agreement to share thier company resources or machinaries.

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keosha answered 9 months ago

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