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How can portfolio analysis be used with strategic alliances? Please answer the question in great detail....

How can portfolio analysis be used with strategic alliances?

Please answer the question in great detail. I will kindly rate and comment! Thank you so much!

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Portfolio analysis helps in evaluating the basket of companies that the portfolio holds and their performance against the objectives on a periodic basis. Such an analysis helps maintaining the portfolio adequately diversified and also meet the risk versus return expectations of the portfolio.

When a company enters into strategic alliance with another firm or group of firms, then the portfolio gets augmented and its risk and return profile also changes. Under such a scenario, portfolio analysis provides the necessary tools to measure the performance of the strategic alliance and provides necessary pointers to understand if the alliance is working and generating the necessary outputs or not. This would also help in necessary course correction when needed.

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