The dark side of strategic alliances has been increasingly taken into account in different areas of management, such as business ethics, [19] Marketing[20] and supply chain management. [21] The term “dark side” has been used in general to refer to the risks and negative dimensions of strategic alliances, ranging from adverse outcomes to ill-intentioned behaviour or unethical practices. [22] Let`s look at five common types of strategic partnerships, as well as what leads to a typical strategic partnership agreement. For a share alliance to take place, one company must acquire a certain percentage of another company`s equity. It can get a little more complex, but you`ll always see that kind of thing in a strategic partnership agreement. They want to interpret everything in printed form so that there are no questions about who will do what later. Many companies opt for quality control and audit clauses in their partnership agreements in order to preserve the integrity of the products or services arising from the partnership, so you should take this into account when drafting your own agreement. Is your company in a strategic partnership? In the comments below, tell us how it works for you. We would love to hear from your successes in the strategic partnership. It seems that every company today has at least one strategic partner.

That said, some are certainly still totally isolated. (Look at Dell.) Choosing the way forward with your business depends on your needs and goals. Both parties acknowledge that they may have knowledge, during the term of this Agreement, of information that is considered confidential or private. A strategic partnership is a mutually beneficial agreement between two separate companies that are not directly in competition. The relationship can be short-term or long-term and the agreement can be formal or informal. A strategic alliance is an agreement between two companies to carry out a mutually beneficial project, while maintaining its independence. The agreement is less complex and less burdensome than a joint venture in which two companies pool resources to create a separate entity. At no time during this Agreement may any of the parties concerned negotiate, delegate or assign any part of this Strategic Alliance Agreement to unauthorized third parties. Notification If a notification is requested by one of the parties, it may be served on the party receiving a notification in person or by certified letter. Another thing to remember is that strategic partnerships can also reduce risk. In other words, for example, if you opt for a strategic manufacturing partner who manages a plant and insures its workers, you will be stripped of your responsibility to operate a similar facility yourself.

Pharmaceutical company, India`s agreement on the marketing of Zydus Cadila drugs throughout India. An agreement like this allows any company to focus on what it does best. In this case, Zydus Cadila can focus on drug production, while Abbott India focuses on drug marketing. All materials and property contained in this Agreement remain the intellectual property of the Party making such items. Strategic alliances are formed to gain market share, crowd out other companies, pool resources for large capital projects, achieve economies of scale or access complementary resources. STRATEGIC ALLIANCE AND SUPPORT AGREEMENT This confidential instruction: Strategic Alliance and Support Agreement (the Agreement) is effective [DATE] B. The purpose of this Agreement is to create a strategic alliance between the first Contracting Party and the second Contracting Party in order to obtain and market goods in the most cost-effective manner. . . .