Firms seeking immediate competitive advantage will seek alliances in new but readily available technologies. Another dimension concerns the fusion of technology, whereby one partner is used to contribute the specific knowledge of a process that is critical to gain competitive advantage. Furthermore, a technology transfer alliance is concerned with the process by which new ideas developed in one organization can be applied within another. For example, a firm can team up with another firm in the private sector, with a university or a government laboratory to transfer technology. Alliance building is now seen to be fundamental to the way large companies conduct business - from technology and product development to manufacturing and marketing.
Many trends point towards co-operation as a fundamental growing force in business.
Multiple alliances Multi-division companies from Japan, the USA and Europe are joining forces to create multiple strategic alliances. This kind of alliance can help to diversify risk on particularly large projects, but at the same time cause co-ordination problems if the alliance spans continents. As time progresses, the circumstances of alliances may change. Difficulties can arise when one party realizes it no longer needs the skills or knowledge of the other. A no longer needs company B's expertise.