The definition of a Strategic Alliance is a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations.
Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is a cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.
The advantages of strategic alliance include:
- Allowing each partner to concentrate on activities that best match their capabilities.
- Learning from partners & developing competences that may be more widely exploited elsewhere.
- Adequate suitability of the resources & competencies of an organization for it to survive.