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A critical factor when forming a strategic alliance is the company's ability to make a critical component. This ability can significantly influence the success of the alliance by ensuring that the partners can deliver value effectively and efficiently. When a company is capable of producing critical components, it enhances the reliability and quality of the products or services offered within the alliance, which can strengthen the collaborative relationship. Furthermore, having control over essential resources or capabilities allows for better alignment of objectives and strategies, ensuring that both parties benefit from the partnership.

While considerations such as the duration of the partnership, the number of joint ventures, and the location of suppliers may influence decision-making, they do not fundamentally determine the functional capabilities that are necessary for the alliance to thrive. The critical component capability directly impacts innovation, operational efficiency, and competitive advantage, making it a cornerstone of successful strategic alliances.