What is the main benefit of a strategic alliance for businesses?

A strategic alliance allows businesses to enhance their market presence without the need to merge or acquire another company, enabling them to remain independent. This arrangement fosters collaboration between businesses to leverage each other’s strengths and resources, such as technology, knowledge, or distribution networks. By partnering with others, businesses can access new markets, share risks, and enhance their competitive advantage while maintaining their autonomy.

In contrast, eliminating competition is not generally a goal of strategic alliances as these partnerships are built on cooperation rather than rivalry. While a strategic alliance may lead to reduced operational costs through shared resources, this is not its primary benefit. Additionally, centralizing decision-making is more characteristic of mergers or acquisitions, where companies fully integrate and lose some degree of independence, which is contrary to the nature of a strategic alliance.