a. Strategic Alliances:
A strategic alliance is an arrangement in which a number of separate companies share their resources and activities to pursue a jointly agreed strategy. By collaborating, all the companies in the alliance are able to offer a better product or service to their customers. Examples of strategic alliances are in the airline industry where groups of airlines might form alliances in order to offer travelers a better selection of routes and facilities than any single airline could offer on its own.

A strategic alliance is an agreement between two or more players to share resources or knowledge, that will be beneficial to all parties involved. It is a way to supplement internal assets, capabilities and activities, with access to needed resources or processes from outside players such as suppliers, customers, competitors, companies in different industries, brand owners, and government regulatory agencies. This form of cooperation lies between mergers and acquisitions and organic growth. Strategic alliances occur when two or more organizations join together to pursue mutual benefits.

Types of Strategic Alliance include:

• Horizontal Strategic Alliance
• Vertical Strategic Alliance
• Intersectional Alliance
• Equity Alliance
• Non-Equity Strategic Alliances

Joint Ventures:
Joint Ventures occur when two or more companies decide to form a new company. A joint venture is a formal venture by two or more separate entities to develop a business or an activity jointly. Many joint ventures are established in the form of a separate company, which is jointly owned by the joint venture partners, with no single partner being able to dominate and dictate the way the company is run. The joint venture allows the business risk and financing to be shared by the joint venture partners. This new company, being a separate legal entity, invests equity and resources in general, like technical know-how. The new firm can be for a finite time, a certain project, or for a lasting long-term business. Control, revenue, and risks are shared according to the capital contribution of the joint venture partners.

Joint ventures are frequently used where:

• There is considerable risk.
• A large amount of capital is needed.
• A mix of skills is essential.