How it works
Sometimes working together is the best strategy, but make sure you create a Strategic Alliance Agreement. When your business decides to share resources and knowledge and help each other in a project, a Strategic Alliance Agreement solidifies your plans by spelling out the terms of agreement for both parties.
There are times when two heads are better than one. If you're partnering with another business on a project, a Strategic Alliance Agreement is just what you need. It's a formal arrangement between two or more companies who have agreed to share resources in a specific project to create a competitive advantage. The Agreement is often used to share products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. While the partners have the same goal, unlike a joint venture, each company stays independent for the term of the Alliance. A Strategic Alliance Agreement has several advantages. Your business may be able to grow and expand more quickly as you focus on the areas that best match your capabilities. You can also gain access to knowledge and resources you didn't have before the Alliance.
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