What are alliances?

An alliance is an agreement among people, companies that have joined together for mutual benefit or to achieve some common purpose.

Alliances formed between corporates are generally strategic in nature. In a strategic alliance, two or more business entities/organizations enter into short or long-term deals to achieve a common goal, to expand into a new market, or to improve the product line, etc.

Benefits of Alliances:

There can be many benefits of a strategic alliance to a company, some of which are listed below:

1. To cater to a particular geography segment.
2. To enter into a niche segment by leveraging technologies.
3. Reduce risk and maximize operational capacities.
4. Helps in capital management.
5. To gain a new client base altogether.

Alliances of Infosys

The below infographic represents some of the alliances of Infosys with global market players:

Let’s understand about the alliance with Adobe:

Adobe and its solution partners are leading a global transformation in the world of digital marketing. The integrated technologies of Adobe Marketing Cloud have opened up new, data-rich, digital channels to unlock value for the world’s leading brands. Infosys is Adobe’s ‘Premier Business Partner.’ Infosys is successfully working with Adobe in the following five areas:

1.Interconnected devices and consumers
2.Predictive and statistical analytics-bolstered marketing
3.Flexible application programming interfaces (APIs) and open sources
4.Industry marketing over traditional
5.Personalized experiences

Conclusion:

Based on this infographic and blog write up, you must have understood the importance and what corporate alliances are about. So, anytime when you come to know about any corporate alliance you should understand it and its estimated impact on the share prices for investment decision making.