"Alliances are reshaping the industries." Explain this concept with respect to Strategic Alliances.

Strategic alliance is a strategic co-operation between two or more organizations, with the aim to achieve a result, one of the parties cannot easily achieve alone. Strategic alliance among international business is very common. Internalization can be very expensive process, particularly where a firm must co-ordinate research & development, production, marketing, human resources & financial decisions to succeed. There is generally a shortfall of all these resources, therefore a company may seek a partner to share these cost for e.g. a firm may develop a new technology but lacks resources for its marketing. So it can enter into the strategic alliance with some other company which is good at marketing or other functions. Such alliance is a strategic alliance. It could be formed through Joint Ventures, Licensing, Franchising and simple alliance to develop technology or dealership. Tata- Starbucks Joint Venture in India. Mcdonald's franchising operations around the world are successful examples of Strategic alliances.. Specifically, alliances are formed between two or more corporations each based on their home country for a specified period of time, their purpose is to share ownership of a newly formed venture & maximize competitive advantage in their combine territories. Strategic Alliances have increasing the trend towards multi company alliances e.g. a six company strategic alliance was formed between Apple, Sony, Motorola, Philips, AT&T and Matsushita to form General Magic Corporation to develop Telescript Communication Software.