Alliance

Alliance
Name
Institution
Alliance
Alliances play a significant role in assisting businesses reinforce their competitive advantage by increasing market authority, enhancing efficiencies, tapping into new resources and entering into new markets. In order to avoid failure of an alliance, there are key things that need to be observed (Segil, 2002).
First, it’s important to select the right partners based on the intended goals. Before picking a business partner, it is important to ensure that there is understanding and commitment. The company executives should be accessed to see if they have a vision and if this company views the world or workplace in a similar way. If there are differences in vision and goals set, the alliance cannot perform (Segil, 2002).
Creating an agreement that includes risk and benefit analysis is essential for the alliance. This means drawing the bigger picture and determining that all the benefits and risks are included. This ensures that the expectations of the partnership are clear to the involved firms (Raucher, 2001).
Creating joint objectives for the partnership ensur...