Many companies find strategic alliances particularly valuable when

they are employing a low$-$cost provider strategy or striving to capture a technology$-$based competitive advantage. they are employing offensive strategies to attack vulnerable market leaders.

they are seeking to outsource a number of value chain activities currently being performed in$-$house.

building loyalty and goodwill among customers is an industry key success factor.

cooperative arrangements with other companies are very helpful in racing against rivals for global market leadership and$/$or racing to stake out a strong position in an industry of the future.