Alliances

Strategic alliances are partnerships in which two or more companies work together to achieve objectives that are mutually beneficial. Companies may share resources, information, capabilities and risks to achieve this. According to Producer's eSource, a common reason for entering into a strategic alliance is to obtain the advantage of another company's innovations without having to invest in new research and development.

While companies have used acquisition to accomplish some of these goals in the past, forming a strategic alliance is more cost-effective.