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An alliance is a friendly partnership between the two companies who decide to work together to attain a common objective. By forming the alliance they mean to strengthen their affect on the market and want to increase the positive outcomes of their plans. Alliances are a world wide concept which has been used from centuries. In the modern world alliances are made between two countries or influential groups but in prehistoric times there use to be tribal alliances to protect their resources and common interest by the intruders. It is natural for humans to form social groups and make social agreements for the advantage of both the parties. Sometimes alliances are very important for the survival. Countries that stand alone against the whole world face severe consequences. That is why astute countries make alliances with the powerful ones so to secure their own interests. Many European countries have formed alliances with each other e.g. G8. It is an alliance of 8 European countries who collectively offer large variety of facilities to every country’s citizen who is the member of G8 alliance group. During the Afghanistan war United States made alliances with several countries like United Kingdom, Australia, France etc. All these countries helped the U.S army to restore the peace in Afghanistan and this process is still under progress. The concept of alliance in not just restricted to the countries. This concept has been very successful in business and commercial economics. Many companies have formed alliances to increase their business and revenue. In technical terms it is called a strategic alliance, as it is a carefully planned agreement between two companies that involves commercial mutually shared plans. For that purpose both the companies have to outline the workable plans with the estimated workforce. Mostly these alliances are beneficial for both entities and work as productive relationship between the two on long term basis. These long term relationships usually turn up to be useful. The creative input by alliances and the mutual workforce make the projects more comprehensive and objective. The losses are also shared by both alliances. It is not necessary that all the alliances have an equal part. They can set their share or part in a project through legal agreement. It is always important to scrutinize the history of your alliances and their provided information through the previous factual data available. But it is a common practice of forming alliances at equal terms or at some bargain. The loss of the company becomes the loss of both the employers and the employee. A friendly alliance can occur between more then two companies. Interrelated companies can form alliances for the common goal to increase the innovation and creation in their plans and agendas. So the total outcome of the company can be enhanced and all the alliances can benefit from it. As the leading IT innovative company HP has formed a global alliance to increase the agility and to provide best services to their customers. In the same manner many other companies have made alliances which are beneficial for their present and future endeavors. |