The principal advantages of strategic alliances over vertical integration or horizontal mergers$/$acquisitions are

a$.$ the transactional and relational concept of operating practices and competencies.

b$.$ the facilitation of best practices, more production capacity, and relevant synergistic savings.

c$.$ potential profitability of the alliance and related experience$-$curve economics.

d$.$ resource pooling and risk sharing, more adaptive response capabilities, and greater speed of deployment.

e$.$ material additions to a company's technological capabilities, strengthening of the firm's competitive position, and boosting of its profitability.