There are seven general areas where alliances can be leveraged. [8] If a condition under this strategic alliance agreement proves invalid or unenforceable, the parties will have the right to replace that condition with an enforceable provision similar to that deemed necessary. Both parties have three months before the termination date of this agreement to offer an extension or enter into a new strategic alliance agreement, as deemed necessary. Some types of strategic alliances include:[2][10][11] The exploitation and exploitation of strategic alliances does not only involve opportunities and benefits. There are also risks and restrictions that need to be taken into account. Failures are often attributed to unrealistic expectations, lack of commitment, cultural differences, strategic differences and lack of confidence. Some of the risks are listed below:[2][18] This Strategic Alliance Agreement is recognized and approved by both parties. The success of an alliance depends in large part on the effectiveness of coordinating the capabilities of the companies involved and the total commitment of each partner to the alliance. There is no uncompromising partnership, but the benefits must outweigh the disadvantages, as alliances are made to fill gaps in the capabilities and capabilities of others. Poor target orientation, performance metrics and a clash of corporate cultures can weaken and limit the effectiveness of the alliance. Among the most important factors to consider in managing a successful alliance: [14][15][16] Michael Porter and Mark Fuller, founding members of Monitor Group (now Monitor Deloitte), distinguish between the types of strategic alliances according to their objectives: there are several ways to define a strategic alliance.

Some of the definitions emphasize that partners do not create a new legal entity, i.e. a new company. This excludes business start-ups, such as joint ventures, in the area of strategic alliances. Others see joint ventures as possible manifestations of strategic alliances. Here are some definitions: strategic alliances have gone from one option to a necessity in many markets and sectors. Different markets and requirements are leading to a growing relied on strategic alliances. Integrating strategic alliance management into the company`s overall strategy is essential to promote products and services, open new markets and use technology and research and development. Today, global companies have many alliances in domestic markets, as well as global partnerships, sometimes even with competitors, which creates challenges such as safeguarding competition or protecting their own interests while leading the alliance. Thus, the management of an alliance today focuses on using differences to create added value for the customer, to face internal challenges, to manage the day-to-day competition of the alliance with its competitors and to manage risk management, which has become a company-wide company. The share of revenues for the 1000 largest U.S.

state-owned enterprises generated by strategic alliances increased from 3 to 6% in the 1990s to 40% in 2010, demonstrating the need for rapid focus on partnerships.