1. A strategic alliance is not only confined by raw materials and components but it also deal with technology and management approach. For example, company “A” manufactures a product in Bangladesh and desire to sell their products in the United States. And company “B” has worldwide distribution channel and want to expand the same product that the company “A” made. That means companies “A” and “B” establish together a strategic alliance to expand their production. Strategic alliance known as two and more companies join the work force, resources, and core competences to achieve a common objective. Firms set up a common insight, collaboration among the firms such as complementary technologies, risk sharing, cost reduction, and market development through a strategic alliance to produce better outcomes.
2. As stated by this article only 50% is the rate of success of joint ventures. Moreover, authors mentioned that “according to a recent study by McKinsey & Company, which found that only half of all joint ventures yield returns to each partner above the cost of capital.” The explanation of collapse of alliance is mention as follow. First, the most significant explanation is that the alliance manager are “traditionally organized and managed.” Diverse business structure and culture trigger alteration in manager approach among the company leader. Second, if the operational performance benchmarks turn out to be outdated that will have an effect on top manager’s resolution. For instance, the article says that “alliance managers don’t know whether to stick to the original condition or renegotiate.” The service level agreements (SLAs) of the traditional alliance focus on protecting on a company's own side and extracting from the other.
3. An agreement between the service provider and customer is known as service level agreement. It works based on common objective for