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Strategic Alliances Discussion

Strategic Alliances Discussion

Question Description

125 words each, with at least 1reference.

one: Strategic alliances are when companies work together and pool assets or resources for the betterment of both. There could be various different reasons why they choose to do this, such as the life cycle. Slow, standard, and fast cycles all have their advantages and disadvantages, and having an alliance can help ease the burden of creating new products, obtaining resources, and various other reasons.

Each type of strategic alliance was created for different reasons. A joint venture is when two companies combine their resources to open a new company. This new venture might not have been possible with just one company, and the additional company provides the extra resources that are needed. An equity strategic alliance is when one company buys a percentage of another company. This could help that company stay afloat. A non-equity strategic alliance is when both companies decide to pool their resources for the betterment of both, but no one is buying a percentage of the other. Each of these alliances are made to further each company in their industry and promote future growth.


Group, S. (2016, July 09). What are the types of Strategic Alliances? Business Jargons . Retrieved November 28, 2020, from

Strategic Alliances – Types and Benefits of Strategic Alliances. (2020, July 13). Retrieved November 28, 2020, from

Thompson, J. (2019, January 24). What Are Strategic Alliances? Retrieved November 28, 2020, from

two: According to Burns, et al, strategic alliances are any formal arrangements between two or more organizations for purposes of constant collaboration and mutual gain/risk sharing. With the continuous advancements in healthcare, alliances can benefit the patient, organizations and its employees. “Strategic alliances are proving to be effective strategies for responding and adapting to changing environments” (Halverson, et al, 1997). Classification of dimensions are ownership, control, size, governance, and nature of participation. These dimensions determine the relationship and set expectations for each organization to provide to the other. Alliances should be formed based on goals and the ability of each unit to assist each other achieve those goals. In healthcare, alliances are usually based on the goal of providing a service where the patient and other organizations benefit in some way or for innovation and learning purposes. Another dimension that I would use is size. When forming alliances size of each organization plays an important role because a larger organization could potentially take over smaller organizations due to the smaller size, lack of leadership, lack of support and lack of funds. Size also plays a role in determining what other valuable resources a specific organization can provide to other organizations in the alliance, which could be a positive or negative dimension. Inevitably the goals of the smaller organization would be overlooked, and the alliance would no longer be beneficial. Participation is also an important dimension when forming alliances. Equal participation from all organizations in the alliance will determine how successful and beneficial each alliance is to each other.

Burns, L., Bradley, E., Weiner, B. (20190102). Shortell and Kaluzny’s Healthcare Management: Organization Design and Behavior, 7th Edition.

Halverson, P. K., Kaluzny, A. D., & Young, G. J. (1997). Strategic alliances in healthcare: opportunities for the veterans affairs healthcare system. Hospital & Health Services Administration, 42(3), 383–410.

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