ated durability established between two independent firms, involving the sharing or pooling of resources to create a mechanism (corporate or otherwise) for undertaking a business activity or activities of strategic importance to one or more partners for their mutual economic advantage'
             THE KEY CHARACTERISTICS OF A STRATEGIC ALLIANCE ARE;
             The 'mechanism' of a strategic alliance can be, for example, a contractual or verbal agreement between two firms to work together, or it may be in the form of a separate company jointly owned by the strategic alliance partners.
             There are a substantial number of permutations in strategic alliances. The principal types are;
             1. A formal co-operative venture - Where two or more independent firms formally agree to work together for their mutual benefit. The agreement may be supported by a formal document or a verbal agreement between the respective Chairman's.
             2. The joint venture - This is where two or more independent firms decide to set up a separate company in
             which all the forming firms have a shareholding. The joint venture is usually independently governed and has its own board of directors.
             3. Joint ownership is where two or more independent firms jointly own an asset such as a manufacturing plant or a bottling plant. The principal function of the jointly owned asset is to serve the interests of the owning firms.
             4. A strategic investment in a partner is where one firm has a small investment in another firm to support their agreement to work together. Often this takes the form of a share swap between two firms with the share swap generally being a gesture of continued mutual commitment rather than a precursor to a merger between the two firms.
             Alliances are used for a number of purposes some of which include to gain new expertise and knowledge; to develop or gain access to new technology and products; to share the costs and risks of a entering into a new busines...