Strategic Alliances vs. Joint Ventures: How Do They Differ in Strategic Management?

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Difference Between Strategic Alliances and Joint Ventures in Strategic Management

In strategic management, understanding the distinction between strategic alliances and joint ventures is crucial. A strategic alliance is a formal agreement between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations. In contrast, a joint venture involves the creation of a new entity by two or more parties, where they share ownership, risks, and profits.

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