FORMS OF

STRATEGIC
ALLIANCES
PRESENTED BY AROOSA AND SHOZIB
WHAT IS
STRATEGIC
ALLIANCE?
• AGREEMENT BETWEEN TWO OR MORE
PARTIES TO PURSUE A SET OF AGREED
UPON OBJECTIVES NEEDED WHILE
REMAINING INDEPENDENT
ORGANIZATIONS .
 SOME EXAMPLES FOR STRATEGIC
ALLIANCES

Here are our top 4 strategic

alliance examples:
• Uber and Spotify
• Starbucks and Target
• Starbucks and Barnes &
Noble
• Red Bull and GoPro

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FORMS OF STRATEGIC
ALLIANCES :
There are three major forms
of strategic alliances :
• Joint Venture
• Equity Strategic Alliance
• Non-equity Strategic Alliance

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FORMS OF STRATEGIC
ALLIANCES :
• Joint Venture
A joint venture is established when the
parent companies establish a new child
company.

• For example
Company A and Company B (parent
companies) can form a joint venture by
creating Company C (child company).

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FORMS OF STRATEGIC
ALLIANCES :
• Equity Strategic Alliance :
An equity strategic alliance is a strategic alliance
in which a firm purchases equity in another firm,
thus shares a partial ownership of the firm. This
type of alliance focuses on combining some of the
firms’ resources, thus creating a competitive
advantage.

• Examples
An equity strategic alliance is Tesla’s relationship
with Panasonic. Their relationship began with a
$30 million investment from Panasonic to
accelerate battery technology for electric vehicles
and grew to include building a lithium-ion battery
plant in Nevada.

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FORMS OF STRATEGIC
ALLIANCES :
• Non-equity Strategic Alliance:
A non-equity strategic alliance (mutual
service consortium) is a strategic alliance in
which two or more firms develop a
collaborative relationship to share some of
their resources and expertise.

Examples
In this type of alliance, firms do not establish
an independent company (joint venture) and
do not take equity positions (equity strategic
alliance).

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PROS AND CONS OF STRATEGIC ALLIANCES:

• PROS OF STRATEGIC ALLIANCE • CONS OF STRATEGIC ALLIANCE

1. Increased Sales and Marketing Opportunities 1. Increased Competition
2. Greater Efficiency and Flexibility 2. Reduced Productivity
3. Increased Brand Awareness 3. Higher Costs
4. Increased Profits and Cash Flow 4. Loss of Identity

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CONCLUSION:
• Strategic alliances can be a valuable
tool for businesses to achieve their
goals.
• There are many different forms of
strategic alliances, and the right form
will depend on the specific goals of
the alliance and the capabilities of
the partners.
• Careful planning and execution are
essential for the success of any
strategic alliance.

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