What does business alliance mean?

business alliance meaning in Law Dictionary

n arrangement between organizations, generally motivated by price decrease and improved service for customer. Alliances tend to be bounded by a single arrangement with equitable danger and possibility share for all functions involved as they are typically managed by an integrated task group. An example of this will be code revealing in airline alliances.

business alliance meaning in Business Dictionary

An arrangement or commitment among separate organizations with corresponding targets, established for a specific function and sometimes for lowering expenses and increasing customer service. The collaboration is usually managed by a group with users from each company and held together by one contract offering an equal share of risk and possibility to each company. A good example could be a shared advertising and marketing program between Wal-Mart and Procter & Gamble. Listed below are the five basic types:1. sales alliance—an agreement to sell services or products that complement one another2. solution-specific—an arrangement to produce and offer a specific company option together3. geographic-specific—an contract to market products in a specific geographical area together4. investment—an agreement to combine funds for provided investment5. joint venture—an arrangement to generally share control, revenue, and reduction in a specific financial task