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What is the Alliances in business?
An arrangement or relationship among independent businesses with corresponding goals, established for a specific purpose and often for reducing costs and improving customer service.
The collaboration is usually managed by a team with members from each business and held together by one agreement giving an equal share of risk and opportunity to each business.An example would be a shared marketing program between Wal-Mart and Procter & Gamble.
The following are the five basic types:
1. sales alliance-an agreement to sell products or services that complement one another
2. solution-specific-an agreement to develop and sell a particular business solution together
3. geographic-specific-an agreement to market products and services in a particular geographic area together
4. investment-an agreement to combine funds for shared investment
5. joint venture-an agreement to share control, profit, and loss in a particular economic undertaking
How to strategies for establishing a successful alliance.
Any company that has something you need -- clients, technology, capabilities --
is a potential partner, provided you have something it needs as well. (For an alliance to succeed,
both companies must benefit from it.) But recognize that alliances rarely come without costs.
At the very least, they require an investment of time that you or your key people could be spending on profitable endeavors.
So it pays to be very selective about whom you team up with.
Our Companies will share snow foam lance resources, information, capabilities and risks to achieve this.
Because forming a strategic alliance is more cost-effective in Car care & detaling line.
As long as your company which deal with car washing parts, such as car care tools, that has something you need -- clients, technology, capabilities --
is a potential partner, provided you have something it needs as well. (For an alliance to succeed,
both companies must benefit from it.)
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