A strategic alliance is a term used todescribe a variety of cooperativeagreements between different firms, suchas shared research, formal joint ventures, orminority equity participation.
Themodern form of strategic alliances isbecoming increasingly popular and hasthree distinguishing characteristics:
1. They are frequently between firms inindustrialized nations2. The focus is often on creating newproducts and/or technologies ratherthan distributing existing ones3. They are often only created for shortterm durations
Advantages of a strategic alliance