Important Items: Important Items What is a Business Alliance? Joint Ventures Strategic Alliances Benefits Where Do I Start?
What is a Business Alliance?: What is a Business Alliance? A business alliance is often created when small businesses join their resources to be able to increase profits. This way, small businesses can enter a market with the necessary resources to compete with large businesses.
Joint Ventures: Joint Ventures A joint venture is a separate entity from the involved businesses in which resources are pooled for greater efficiency on both ends of the alliance. A small company can create a joint venture with a large company to receive the technology and resources of the large company to help with growth.
Strategic Alliances: Strategic Alliances A strategic alliance is not a separate entity like a joint venture; rather, multiple businesses pool their resources but are expected to continue functioning on their own. Often, technology, property, and even money is shared between these businesses to improve growth on both ends.
Benefits?: Benefits? Access to more resources Possibility to compete against large businesses Increase in efficiency Increase in profits Support from other businesses
Where Do I Start?: Where Do I Start? Before deciding whether you want to enter a business alliance, it is a good idea to ask an operational consulting firm whether it is best for your business to enter one. The operational consultants will also suggest other methods to improve the structure of your business and increase profits.