strategic alliance

In order to know the meaning of strategic alliance, the first thing we have to do is know the etymological origin of the two words that shape it:
-Alliance, first of all, it derives from Latin. Specifically, it comes from the sum of the verb “alligare”, which can be translated as “tie”, and the suffix “-anza”.
-Strategic, on the other hand, comes from the Greek, more precisely from "strategikos" which is made up of three different parts: the noun "stratos", which means "army"; “Agein”, which can be translated as “carry out”, and the suffix “-ico”, which is equivalent to “relative to”.

A alliance it's a agreement, a agreement or a arrangement between two or more parties. Strategic, for its part, is that linked to the strategy: the directives to coordinate or manage something.

It is called strategic alliance to the covenant that establish Business, organizations or other entities to work together and thus achieve that each one can achieve its objectives. It is a methodology of cooperation very common in the business context.

In addition to everything indicated, it is important to underline that any strategic alliance project worth its salt consists of several phases:
-Training. Within this period, the parties involved must undertake both a formulation of the strategy to be followed and an evaluation of the partners and, of course, the relevant negotiations to reach a firm agreement.
-Operation. It is the moment in which a clear structure of the strategic alliance will be established, determining, among other things, the functions that each of the parties involved will carry out.
-End of the strategic alliance. This moment can occur for different reasons, among which we would highlight the following: because the established period that it was going to last has been fulfilled, because there are situations that conclude it prematurely, because one of the two parties wants to end it, because new partners emerge ...

Strategic alliances can allow partners to bring products, technology, knowledge or capital, to name a few possibilities. The purpose is to develop synergies: that which is generated when two or more factors together provide a higher result than would be obtained with the sum of the individual results. In other words, the strategic alliance makes it possible to achieve a better result than the partners would arrive at separately.

An Argentine company can establish a strategic alliance with a Chilean company so that both can enter the market from the other country. With the support of the Chilean firm, the Argentine company is in a position to enter the Chilean market more easily than if it were to do so alone. Similarly, the Chilean company can operate and grow in Argentina thanks to the collaboration of its partner.

A club Spanish, for its part, can sign a strategic alliance with a Uruguayan team. The European entity invests to build a sports school and a training ground in Uruguay, while the Uruguayan club is committed to giving priority to the Spanish team when it comes to transferring the best young players that emerge.