Question

Is equity ownership more useful and important for capability-building alliances than for results-driven alliances? 300 words

Answer 1

Yes equity ownership is more useful and important for capability building alliances than for results driven alliance because no organisation is strong in all segments then there is the best opportunity to exchange their capabilities and resources with the competitors and that alliances can be beneficial for both the organisations.The strategic alliance can be used as way to efficient capability building.

When an organisation is aware of its capabilities then it make use of it and start using it for their competitors .The capability in which they are expert start teaching and assisting their partners .The capability driven alliance can be beneficial for the parties by this the organisation who is teaching the other parties will learn more and become expert in that particular field and the parties those who are learning are also get benefited by that.

The internal capabilities of the partners of the organisation get developed mutually through capability driven alliance by this initiative the weaker sections of the organisation get improved and ready to face the competition in the market and start focusing on capability building alliances.

The capability building is a type of interfirm relationship with other parties but this type of relationship will not be beneficial if the parties are not capable in adapting and not making effort in improving their capabilities.

Thus this alliances and mergers are the beneficial