<P> In the 1990s, geographical borders between markets collapsed and new markets were enterable . Higher requirements for the companies lead to the need for constant innovation for competitive advantage . The focus of strategic alliances relocated on the development of capabilities and competencies . </P> <Ul> <Li> All - in - one solution </Li> <Li> Flexibility </Li> <Li> Acquisition of new customers </Li> <Li> Add strengths, reduce weaknesses </Li> <Li> Access to new markets + technologies </Li> <Li> Common sources </Li> <Li> Shared risk </Li> </Ul> <Li> All - in - one solution </Li> <Li> Acquisition of new customers </Li>

In a strategic alliance companies join together to form a separate entity to produce a product