Strategic alliances generally include the risk of one partner will make advantage of the other's information to strengthen its own competitive position.
A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. Compared to a joint venture, which sees two companies combine resources to form a new company, the arrangement is simpler and less legally enforceable.
The collaboration between Spotify and Uber is a well-known example of a strategic alliance. Due to their strategic partnership, Uber customers may log in to Spotify and listen to their favorite music while riding.
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