What is the relationship between a Strategic Alliance and a Joint Venture?

A Strategic Alliance is an arrangement between two companies to undertake a mutually beneficial project, with each remaining independent.

Joint Venture is a form of Strategic Alliance that is more complex and binding.  In a Joint Venture, two businesses pool resources to create a separate business entity.

The three basic types of Strategic Alliances are: Joint Venture, Equity Strategic Alliance, and Non-equity Strategic Alliance.  Strategic Alliances share the following characteristics:  

  • They feature an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project; 
  • They contain an agreement that may help a company develop more effective processes; and
  • They allow two organizations, individuals or other entities to work toward common or correlated goals.

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Sources:

https://www.investopedia.com/terms/s/strategicalliance.asp

https://corporatefinanceinstitute.com/resources/knowledge/strategy/strategic-alliances/