Experience indicates that strategic alliances

work best when two companies that are fierce competitors decide to join forces and collaborate rather continue their warfare and ruin their chances for good profitability.

work well when the purpose is to collaborate in developing new technologies but seldom work well in helping the partners gain better access to attractive new market opportunities.

are generally successful.

stand a reasonable chance of helping a company reduce competitive disadvantage but rarely boost the competitive power of its resources and capabilities by enough to gain a competitive advantage.

are rarely useful in helping a company reduce costs but may well help a company open up attractive new market opportunities.