Benefits of Strategic Alliances and Partnerships
♦Minimizes the problems associated with vertical integration, outsourcing, and mergers and acquisitions.
♦Useful in extending to extend the scope of operations via international expansion and diversification strategies.
♦Reduces the need to be independent and self-sufficient when strengthening the firm’s competitive position.
♦Offers greater flexibility should a firm’s resource requirements or goals change over time.
♦Are useful when industries are experiencing high-velocity technological advances simultaneously.