The different forms of business alliances can be broadly categorized into the following:
Joint venture alliance
Solution-specific allianceInvestment alliance
In a number of instances, the business alliances between firms may include two ormore classes or forms of business alliances. A sales alliance takes place in case two firms concur in selling interchangeable goods and services. A solution-specific alliance happens at that timewhen two firms accord in formulating and selling a particular marketplace solution in a collaborative manner. A geographic-specific alliance is formed in case two firms consent for collectivelyselling and co-branding their goods and facilities in a particular geographical location.
An investment alliance takes place at the time when two firms concur to combine their finances for thepurpose of mutual investment. A joint venture alliance (JV) happens in case two or more firms consent to take on any commercial venture jointly. A strategic alliance is a form of combined alliancesimilar to the joint venture. Nevertheless, it is not a distinct legal entity like a joint venture. An equity partnership has some features of strategic alliance; nevertheless, an equity partnershipincludes one party who has the claim of a minority equity share on the other party. In case of licensing, there are two common forms. The first form includes licensing of a particular commodity,technology, or procedure. The second form includes licensing of a copyright or trademark. In a franchising alliance, a company can allow for options of selling commodities and services to a largenumber of licensees functioning in various geographic areas. A network alliance is basically a network of interlinking alliances among firms those frequently cross industrial and country borders
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