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In a non-equity strategic alliance, organizations create an agreement to share resources without creating a separate entity or sharing equity. Non-equity alliances are often more loose and informal than a partnership involving equity. These make up the vast majority of business alliances.
Some examples of alliances that the U.S. is in include NATO ? the North Atlantic Treaty Organization (with 28 other countries), NORAD ? the North American Aerospace Defense Command (with Canada), ANZUS ? the Australia, New Zealand and U.S. Security Treaty, and the Moroccan-American Treaty of Friendship ? which is ...
The deal between Starbucks and Barnes & Noble is a classic example of a strategic alliance. Starbucks brews the coffee. Barnes & Noble stocks the books. Both companies do what they do best while sharing the costs of space to the benefit of both companies.
Some good examples of strategic partnership agreements between brands that you may have heard of include Starbucks' in-store coffee shops at Barnes & Nobles bookstores and HP and Disney's ultra hi-tech Mission: SPACE attraction.
Examples of Strategic Alliances The deal between Starbucks and Barnes & Noble is a classic example of a strategic alliance. Starbucks brews the coffee. Barnes & Noble stocks the books. Both companies do what they do best while sharing the costs of space to the benefit of both companies.
The single most important element in forming an alliance is that there must be a common value proposition for both parties ? a way that each can benefit as a result of the effort that is put into the alliance relationship.
The key elements of a strategic alliance agreement include the purpose of the agreement, the obligations of each party, any financial arrangements, confidentiality, dispute resolution and termination provisions.
Strategic partners also benefit from shared risks and increased brand awareness. On the other hand, the primary disadvantages of strategic alliances are conflicts of interest, lack of commitment and transparency, increased liability, and shared profits.