In classical inheritance, the programmer writes a class, which defines an object. Multiple objects can be instantiated from the same class, so you have code in one place which describes several objects in your program. Classes can then be organized into a hierarchy, furthering code reuse. More general code is stored in a higher-level class, from which lower level classes inherit. This means that an object is sharing code with other objects of the same class, as well as with its parent classes.
There may not be a hard and fast rule as to why prototypal inheritance is an advantageous form of code-reuse. Code reuse itself is advantageous, and prototypal inheritance is a sensible way of going about it. You might argue that prototypal inheritance is a fairly simple model of code reuse, and that code can be heavily reused in direct ways. But classical languages are certainly able to accomplish this as well.
Sidenote: @Andrew Hedges makes a good point, that there are actually many prototypal languages. It's worth noting that these others exist, but also worth noting that none of them are anything close to mainstream. NewtonScript seemed to have some traction for a while, but died with its platform. It's also possible to extend some modern languages in ways which add prototypal capabilities.
A prototype-based language, does not make the distinction of classes vs objects: it simply has objects. A prototype-based language has the notion of a prototypical object, an object used as a template from which to get the initial properties for a new object. Any object can specify its own properties, either when you create it or at run time. In addition, any object can be associated as the prototype for another object, allowing the second object to share the first object's properties.
The advantage/disadvantage is that, we can create new kinds of objects at run time without need for defining classes (static code). Like most features it is upto the developer to turn it to a advantage/disadvantage.
Above is possible because objects are essentially functions in java script (closures too).
After reading all the answers this is the conclusion
1) Inheritance in which objects are inherited directly from other objects
2) That does not use classes
3) Also called instance based programming or classless prototype oriented programming
4) Behaviour reuse is performed by cloning existing objects that serve as prototypes
5) Object used as template from the new object get initial properties
You may get the object from just about anywhere; your own code, from the network, from the database, from external linkage and so on.
Memory conservation is one of the benefits of prototypal inheritance in JS. In a language like Java, objects generate their own copies of the superclass' instance variables and methods, while in JS, the "super"-object offers get-access to its variables and methods to each "sub"-object that inherits from it without the need to recreate them.