What is the definition of a strategic alliance?

A strategic alliance is defined as a partnership between organizations that work together to achieve common strategic objectives. This collaboration can take various forms, such as sharing resources, expertise, or technology, which allows the involved organizations to gain competitive advantages, enter new markets, or accelerate innovation without undergoing the complexities of a merger or acquisition. Strategic alliances are characterized by cooperation while maintaining the independence of the partner organizations, which is essential for leveraging each partner's strengths and capabilities in pursuit of shared goals.

In the context of business strategy, forming a strategic alliance can be crucial for companies looking to enhance their market position, increase their operational capabilities, or achieve scale. By combining resources and capabilities with another organization, companies can mitigate risks and share costs—factors that are vital in highly competitive environments.