Robert Gillis, a certified management consultant who does seminars on strategic alliances, defines an alliance as companies that have common goals organizing around a collaboration for economic gain but with the intent to remain independent entities. According to Gillis, by the year 2000, alliances are expected to account for 20 percent of a firm's revenue. The alliance may be a software company collaborating with another business for a function such as distribution. Another scenario might be complimentary products combining marketing efforts. Gillis suggests looking for a like-minded, financially stable company when considering an alliance.
All companies have assets and needs.
The alliance leverages the assets of both. Gerke said the SBDC is working with more businesses that are moving in the direction of alliances. Despite their advantages, strategic alliances are not for everybody. Running and owning a company is different than running an alliance. You subjugate your own company interests for the sake of the alliance and share the benefits with a partner or partners.