Strategic Alliance

Tax Glossary Definition

Strategic Alliance

A strategic alliance is a cooperative arrangement between two or more independent organizations that collaborate to achieve specific business objectives while remaining separate legal entities. Such partnerships are often created to combine distinct strengths, share expertise and resources, enter new markets, or accelerate innovation and competitiveness without merging ownership or control.

Example: An automobile manufacturer might partner with a technology firm to design advanced electric vehicle systems—the automaker contributes production capabilities, while the tech company provides software and engineering expertise.

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