What are the risks associated with strategic partnerships?

What are the risks associated with strategic partnerships?

Strategic partnerships can lead to risks such as misalignment of goals, dependency on partners, and potential conflicts.

Can you elaborate on the dependency risk?

Certainly! Dependency risk occurs when one partner relies heavily on another for resources or capabilities, which can lead to vulnerabilities.

What can companies do to mitigate these risks?

Companies can conduct thorough due diligence, establish clear communication channels, and create exit strategies to mitigate risks.

Are there any examples of failed strategic partnerships?

Yes, notable examples include the partnership between Coca-Cola and Columbia Pictures, which ended due to conflicting interests.

How can companies ensure alignment of goals in a partnership?

Companies can ensure alignment by setting shared objectives, regular check-ins, and involving all stakeholders in decision-making.