What are alliances?

An alliance refers to the relationship (majorly formal) between two business entities which share either long term or short term goals. Various types of alliances include co-manufacturing, cross-licensing, and joint ventures, among other alliances. Different companies enter into alliances for various reasons. However, the most common reasons include improving the product line, utilizing a new market through expansion, or developing a competitive advantage. Various examples of alliances include Uber and Spotify, Barnes and Starbucks.