Types of Alliances

There are 5 basic types of alliances that can benefit your company:

1. A Sales Alliance happens when companies come together to sell complementary products or services to the benefit of both companies.
2. A Solution-specific Alliance occurs when two companies agree to jointly develop and sell a specific product or service. Each company brings its strengths to the solution and together they enjoy a success they could not have realized separately.
3. A Geographic Alliance occurs when two companies agree to market their products or services in different geographic regions. This type of alliance can be used to expand products quickly into a larger geographic area or worldwide.
4. An Investment Alliance involves money can involve one company investing in the product development of another or two companies pooling investment dollars to take advantage of business opportunities together.
5. A Joint Venture Alliance occurs when two or more companies combine their resources—talent, money, business skills—to produce products and services. The synergy that occurs allows the products and services to be created; they would not exist otherwise.