A strategic alliance or strategic partnerships are an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations.
The alliance is a cooperation or collaboration which aims for a cooperation 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.
Typically, companies form a strategic alliance when each possesses one or more business assets or have expertise that will help the other by enhancing their businesses.
Strategic alliances can develop in outsourcing relationships where the parties desire to achieve long-term win-win benefits and innovation based on mutually desired outcomes.
This form of cooperation lies between mergers and acquisitions and organic growth. Strategic alliances occur when organizations join to pursue mutual benefits.