Journal of Hotel and Business Management
Open Access

Abstract

A study on recent trends and challenges in the formation of strategic alliances among companies in India and the foreign nations

Kishore Vattikoti Osmania University, India

“Strategic alliance” may be one of the most heard words in the global business today. A strategic alliance is a partnership arrangement between two or more companies that have decided to work together to achieve the objectives that are mutually agreed and often share resources to undertake mutually beneficial projects. The specific reason behind agreement of strategic alliance is to take advantage of the resources and innovations of both the partnership companies without making new investments on research and development a strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity. Strategic alliances allow the partnered organizations, individuals and other related entities to work towards correlating objectives. The idea behind such arrangements is a benefit for all parties, in the short-term, long-term or both. The arrangement may be formal or informal in nature, but each party’s responsibilities must aim towards achieving the objectives for which such alliances was agreed.

Published Date: 2021-07-30; Received Date: 2021-07-20