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What's a Strategic Partnership? A strategic partnership is a formal agreement of partnership between two companies. Usually, it involves the sharing of information, finances, skills, and other resources to benefit both agreeing parties. In some cases, such a partnership involves more than two parties.
As examples, an automotive manufacturer may form strategic partnerships with its parts suppliers, or a music distributor with record labels. The activities of a strategic partnership can also include a shared research & development department between the partners.
Various strategic partnering includes non-equity and equity strategic alliance and joint venture. Moreover, a joint venture is beneficial since it gives access to new expertise and knowledge and increases sharing costs and risks with a partner.
A partnership agreement is a legal document that dictates how a small for-profit business will operate under two or more people. The agreement lays out the responsibilities of each partner in the business, how much of the business each partner owns, and how much profit and loss each partner is responsible for.
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.
A business partnership agreement is a document that establishes clear business operation rules and delineates each partner's role. These agreements are enacted to resolve disputes, delineate responsibilities, and define how to allocate profits and losses.