Strategic alliances

Definition

Strategic alliances are formal agreements between two or more companies to work together on a specific project or goal, sharing resources and knowledge to achieve mutual benefits. These partnerships can range from joint ventures and supply agreements to collaborations on research and development.

Related terms

Joint Venture:

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, with each party owning a share of the company and its profits or losses.

Merger:

The combination of two companies into one new entity, often aiming to increase market share or expand into new segments.

Competitive Advantage:

An attribute that allows an organization to outperform its competitors, such as superior product quality, unique technology, or efficient operations