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In this Business School 101 video, the concept of strategic alliances is explored. These alliances are defined as voluntary arrangements between firms that involve sharing knowledge, resources, and capabilities to develop processes, products, or services. The video highlights the increasing trend of companies entering such alliances to enhance strengths or compensate for weaknesses. It aims to answer key questions about what strategic alliances are, the reasons firms form them, the major types of alliances, and provides real-world examples. The discussion emphasizes the explosion of strategic alliances in corporate strategy over recent decades.