What is the objective of a strategic alliance?

The objective of a strategic alliance is to share resources for mutual competitive advantage. Strategic alliances allow two or more firms to collaborate, pooling their resources and capabilities to achieve goals that they might find difficult to achieve independently. By leveraging each other's strengths, companies can access new markets, share research and development costs, or innovate more effectively. This collaborative approach fosters synergy, enabling partners to improve their market positions and competitive capabilities while minimizing risks and costs associated with entering new ventures alone.

This strategic approach contrasts with other options, as increasing competition among firms, reducing labor costs, or seeking to dominate a single market does not fully capture the collaborative essence of a strategic alliance. In fact, the focus on collaboration and mutual benefit is what differentiates strategic alliances from other competitive strategies.