But it is not limited to one definition. Alliances also can serve to leverage core competencies or as an alternative to in-house development. Some companies even use an alliance as a pre-acquisition test before committing to a formal merger.
The key to a successful alliance is how it is constructed. Here are some considerations that might be found on such a checklist:
NOTE: If one party benefits within a short period of time, there is little incentive for them to continue work on behalf of the other party
The creation of new opportunities by combining skills and resources of both partners will enhance internal development and add value to the company. One of the benefits of a successful alliance is the ability to let each company become more familiar with their counterparts so that if a merger is negotiated, the integration would go more smoothly than it would have otherwise.
The most delicate part of forming an alliance is an effective operations and management support program. Engaging a third party is recommended so that it can help both parties keep their eyes on the target, share the costs, and reduce risks for win-win results