Alliance

In the spectrum of business relationships an alliance represents a co-operative but non-controlling relationship between two or more parties, often motivated by shared goals such as cost reduction, or improved customer service. Alliances are similar to partnerships, though the parties in an alliance may co-operate under a formal agreement, perhaps including sharing of risk and/or rewards and, may include dedicated teams or other co-ordinating mechanisms to realise potential benefits. As an example, the airline industry uses alliancing to secure economies of scale and offer a broader network to customers. See also Partnership and Supplier Relationship Management.