Strategic Alliance Agreement Example

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In the natural order of things, a situation arises in two different ways. There is a black and white side in different scenarios. Similarly, strategic alliances are no exception to the general rule. Here are some of the main pros and cons of committing to this partnership. This list will help you evaluate your options if you are considering creating an alliance. 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. 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. It was a match that was done in heaven. The imagination of a book lover on a quaint afternoon is one with books and a good cup of Joe. With the strategic alliance of companies, the scenario remains only imagination. Almost every Starbucks site has book corners that take care of Barnes & Noble. The ingenuity of this partnership has invited more customers into themselves and encouraged them to stay longer because of the warm atmosphere. The bookstore has resinted the crisis, because no online store can ever offer the appeal and comfort of the Alliance.

A strategic alliance is an agreement between two companies to carry out a mutually beneficial project, while maintaining its independence. The agreement is less complex and less burdensome than a joint venture in which two companies pool resources to create a separate entity. If any term under this Strategic Alliance Agreement is found to be invalid or unenforceable, the parties shall have the right to replace that term with a similar enforceable provision, deemed necessary. . . .

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