Which is a key aspect of creating a strategic alliance?

Pooling resources for better competition is a key aspect of creating a strategic alliance because it allows organizations to combine their strengths and capabilities, thus enhancing their competitive edge in the marketplace. Strategic alliances are fundamentally about collaboration, where two or more organizations work together towards a common goal, which commonly includes sharing resources, knowledge, and expertise.

When organizations pool resources, they can achieve synergies that might be difficult to accomplish independently, such as accessing new markets, increasing innovation through shared R&D efforts, or improving efficiencies. This collaborative approach fosters innovation and agility, enabling the partnering organizations to respond quickly to market changes and challenges while maintaining their respective identities.

In contrast, administrative consolidation typically suggests a merger or acquisition, aiming for a unified structure rather than maintaining independent functioning, which lacks the flexibility and collaborative spirit of a strategic alliance. Developing a completely new organization could imply a more complex undertaking than is necessary for a strategic alliance, and independent operation without collaboration does not provide the benefits of shared strengths that a strategic alliance aims to achieve.