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Alliance Agreement

PandaTip: Strategic alliances assume that both parties are able to communicate quickly and make decisions. This section of the proposal requires both parties to designate a person capable of acting on their behalf on matters related to the strategic alliance. In the 1980s, strategic alliances aimed to build economies of scale and scale. The parties have tried to consolidate their positions in their respective sectors. During this period, the number of strategic alliances increased significantly. Some of these partnerships result in great successes such as Canon photocopiers sold under the Kodak brand or the partnership between Toshiba and Motorola, whose addition of resources and technology is a great success with microprocessors. The alliance is a cooperation or cooperation that aims at a synergy in which each partner hopes that the benefits of the alliance will be greater than those of individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialisation,[1] common spending and shared risks. In the 1970s, strategic alliances focused on product performance. The partners wanted to obtain raw materials of the best quality at the lowest possible price, the best technology and better market penetration, while the focus has always been on the product. One of the main objectives of a company is to achieve maximum profit at a lower cost. Several methods are available, one of which is to engage in a strategic alliance. In a study reported by the Harvard Business Review, the number of strategic cooperations between companies is increasing by a quarter per year.

A successful partnership also contributes to a third of a company`s annual profits. In addition to the benefits that this method guarantees, this article contains other details that will help you determine if this method meets the requirements of your business. 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. Another drawback that should be borne in mind when making strategic alliances is the possible misuse of resources. Thanks to the partnership between two independent companies, there is a pool of senior officials willing to implement the rules. In this situation, where a considerable number of people want to lead, some may resort to mismanagement of resources. Another possible scenario that can lead to an abuse of ownership is that both parties cannot opt for a standard method to achieve the common goal. As a result, each party would like to deforest resources to implement its preferred practices and, ultimately, waste more than following a failed plan. 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 yourself with a company with a large fan community and set goals. . . .