Why would a firm establish a non-joint venture strategic alliance instead of a joint venture? What are the characteristics of a non-joint venture strategic alliance?

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The Answer is A formal management organization allows a joint venture to be broader in purpose, scope (or range of operations), and duration than other types of strategic alliances. A non-joint venture strategic alliance may be formed merely to allow the partners to overcome a particular hurdle that each faces in the short run. A joint venture will be more helpful if the two firms plan a more extensive and long-term relationship. A typical non-joint venture strategic alliance has a narrow purpose and scope, such as marketing a new smartphone in Canada. A joint venture might be formed if firms wanted to cooperate in the design, production, and sale of a broad line of telecommunications equipment in North America. Non-joint venture strategic alliances are often
formed for a specific purpose that may have a natural ending. Because of their narrow mission and lack of a formal organizational structure, non-joint venture strategic alliances are relatively less stable than joint ventures.

Why Would a Firm Establish a Non-Joint Venture Strategic Alliance