Necessary conditions for successful alliance formation are -
Successful alliances depend on the ability of individuals on both sides to work almost as if they were employed in the same company. For this form of collaboration to work, team members need to know how their partners operate: how they make decisions, how they allocate resources, how they share information. In turn, this requires a clear understanding of each partner's organizational structure, policies and procedures, culture and standards. Partners should use this understanding to establish guidelines for working together.
However, alliances are not just any business arrangement. They require a high degree of interdependence between companies to be able to continue to compete in the market. They must be able to navigate and often actively exploit the significant differences between their partners' strengths and operating styles.
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