How can Startups Benefit from Strategic Alliances?
Printer Print Email Email
Non-equity Strategic Alliance
Strategic Alliances for Startups
Less formal than a joint venture, in a non-equity strategic alliance, companies develop a contractual-relationship to share their unique resources and capabilities to create a competitive advantage. The two businesses retain their own equity and share resources which can include the user base, software, and channels of distribution. Since, neither of the owners are tied up, it helps in a better development of products. Also, since it is a less formal alliance, the commitment requirements and implementation processes are far simpler than the other forms. An example of non-equity strategic alliance is Magna International, a global supplier of automotive components, with GM, Ford Motor Company, Honda, DaimlerChrysler, and Toyota. Startups can opt for this form, if they don't want their equity to be diluted, but get a mentor and a backing from a experienced player.

Digital Supply Chain Transformation – Winning the AI/ML Way