Three principal advantages of strategic alliances are: Cost controls: Strategic alliance is one where two or more companies share their resources for the common benefit of each other. Like...

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Three principal advantages of strategic alliances are: Cost controls: Strategic alliance is one where two or more companies share their resources for the common benefit of each other. Like communication contacts of professionals, suppliers and distributors etc. This reduces cost due to alliance between the two companies. If a company is in search for a supplier it may get one but with high however due to the alliance formed and a supplier provided by the partner in alliance the cost will be reduced. Independent - In a merger or acquisition a company may or may not loose it individual identity, however in a strategic alliance the ownership stays with the company itself and just the resources are shared. Each partner maintains its individuality in an alliance always. Flexibility - As compared to a merger or acquisition resources of two or more companies can also be shared in a strategic alliance. This can a great deal of competitive advantage to the companies involved without the risk of loosing control of management or ownership.With the additional amount of resources available the companies can be more flexible in their organizational structure and decision making.