The main advantage to a firm forming a strategic alliance is that it is inexpensive.

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While forming a strategic alliance may be less expensive than a merger or acquisition, it still involves resources and efforts such as negotiating terms, establishing trust and communication with the alliance partner, and adapting to different organizational cultures. However, the main advantage of a strategic alliance is the potential for increased market access and competitive advantage through shared resources, knowledge, and capabilities.

The Main Advantage to a Firm Forming a Strategic Alliance