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Simple English definitions for legal terms
strategic alliance
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A quick definition of strategic alliance:
A strategic alliance is when two or more businesses work together to get benefits like more money, better operations, or more customers. They do this without losing their independence or competing against each other. For example, a company that makes a product might team up with another company that sells it to share the costs of making it. This is different from a partnership or joint venture.
A more thorough explanation:
A strategic alliance is when two or more businesses team up to gain advantages without losing their independence. They work together to achieve long-term financial, operational, or marketing benefits.
For example, a manufacturer and distributor might form a strategic alliance to develop and sell a new product. They share the costs of development and marketing, but they still operate as separate businesses.
Another example could be two airlines forming a strategic alliance to share routes and resources. This allows them to offer more destinations and better service to their customers.
Overall, a strategic alliance is a way for businesses to work together and achieve mutual benefits while still maintaining their own identities and independence.