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. This form of cooperation lies between M&A and organic growth.
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.
Read more about Strategic Alliance: Types of Strategic Alliances, Stages of Alliance Formation
Famous quotes containing the words strategic and/or alliance:
“The practice of S/M is the creation of pleasure.... And that’s why S/M is really a subculture. It’s a process of invention. S/M is the use of a strategic relationship as a source of pleasure.”
—Michel Foucault (1926–1984)
“It is a power stronger than will.... Could a stone escape from the laws of gravity? Impossible. Impossible, for evil to form an alliance with good.”
—Isidore Ducasse, Comte de Lautréamont (1846–1870)