Strategic Alliance &

What is Startegic Alliance?

Strategic alliances are agreements between two or more separate companies to collaborate on the development, manufacturing, or sale of products and services, or other business objectives.

In a strategic alliance, for example, Company A and Company B pool their resources, talents, and core competencies to pursue common goals in the creation, manufacture, or distribution of goods or services.

Strategic Alliance Types

Joint Ventures, Equity Strategic Alliances, and Non-equity Strategic Alliances are the three forms of strategic alliances.

Joint Venture

When the parent firms form a new child company, they form a joint venture. Company A and Company B (parent firms) can, for example, form a joint venture by forming Company C. (child company).

Furthermore, a 50-50 Joint Venture is defined as when Firm A and Company B each control 50% of the child company. The joint venture is categorised as a Majority-owned Venture if Company A owns 70% and Company B owns 30%.

Equity Strategic Partnership

When one firm buys a particular percentage of the other’s stock, it forms an equity strategic alliance. An equity strategic partnership would be created if Company A purchased 40% of Company B’s stock.

Strategic Alliance (non-equity)

When two or more organisations enter into a formal agreement to pool their resources and expertise, they form a non-equity strategic alliance.

A Client Story

Many Startups these days struggle to get through that one company which supports their product or service hand in hand, imagine buying a toothbrush with a Paste where both the products complement each other and hence becomes a perfect product match to bundle it together.
In our past experiences we have helped multiple companies with Alliances that could help them rebuild their brand image to Partnerships that helped both the parties having a win-win show at the end of the day.
One of our clients from Waste Management industry wanted their products to be show cased in One of the biggest Conferences/Exhibitions In India. We stepped in and planned the project in such a manner that the event organizers were happy to have their event show cased as a Zero-Waste event and the Company benefitted by the allocation of space in the same event to market their products to the audience. This lead to a great exposure to both the parties to learn about each other and ways to have a barter deal in place that creates the right impact.

Meet Our Strategy Expert

Pankaj Kayathwal
Pankaj KayathwalCo-founder and Managing Director
Pankaj Kayathwal is the Co-founder and Managing Director at Incredo Business Private Limited. He has a rich experience of over 40 years in various business verticals including Sales, Marketing, Government Relations, Sourcing, etc working along various industries. He has worked at the senior management level with large corporates like Eureka Forbes, Pertech Computers Limited (PCL), SpiceNet, LG Electronics India, etc. He is one of the pioneers of Compu-Tech evolution in India and is widely connected with numerous classic and well-known leaders and experts in distinguished industries. A St. Xavier’s College, Calcutta Alumini and very instrumental in developing several new products and techniques in the industry. Pankaj is a qualified Independent Director and a selfless social worker who has devoted much of his leisure time towards service to society in numerous areas of social development, capacity building, Healthcare and inclusion. Pankaj emits a strong will power to take up challenges and motivate the team from the front.

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