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Welcome to Business School 101. Strategic alliances are partnerships between firms to share knowledge, resources, and capabilities with the goal of developing processes, products, or services. Companies form these alliances to enhance strengths or compensate for weaknesses. There are different types of strategic alliances, and examples include Starbucks in Target and BMW in Louis Vuitton stores. The use of strategic alliances in corporate strategy has increased in recent years. In this video, we will explore the concept of strategic alliances and why companies form them.