strategic alliance

A strategic alliance is a formal agreement between two or more companies to work together while remaining independent. Each partner shares resources, knowledge, or capabilities to achieve common goals, like entering new markets or developing new products. Unlike a merger, the companies maintain their separate identities but collaborate for mutual benefit. This approach can enhance competitiveness, reduce risks, and foster innovation by leveraging each partner's strengths. Examples include technology firms partnering to co-develop software or airlines joining forces for code-sharing on flights.