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In addition to international trade and foreign direct investment, strategic alliances (SA) are the third driver of the globalization process. The theory and practice often use terms cooperation agreement and global strategic partnership. The term alliance covers all forms of cooperation between enterprises in the international economy that are more than usual market transactions and less than mergers and acquisitions of companies. The purpose of linking companies in strategic alliances, should be to strengthen the company's competitive advantage at the global market as a whole or at its individual segments and niches. If this is not achieved, it is better that the company has an independent performance on the market. Like all other forms of cooperation, strategic alliances also carry both, the opportunities and the threats.

During the last decades of the last century, there has been a flood of strategic alliances, which are formed between multinational companies across a variety of business activities. They represent a kind of transitional mechanisms, which are driving forward strategy of the partners in a turbulent environment. There are numerous factors that affect the global integration of business and above all: capital intensity, the ratio of the optimal scope and size of the world market, pressures

from customers and/or suppliers, the ratio of value added and transport costs, the economy of scale, the international strategies of competitors and more.

New forms of business organizations, have become a prominent phenomenon in economic flows. Even before the forces of global competition became explicitly expressed, there was a trend towards more flexible organizational structures. Such new forms of organization put an emphasis on partnerships among companies, various forms of ownership and partnership within the organization, linking between teams of different organizations and other. There are different names for this kind of connectivity: network, value - adding partnerships, alliances. All of them are characterized by flexibility, specialization, and focus on the management of mutual relations rather than the management of mutual market transactions. Visualization of the new forms of organization can be presented with the wheel (Figure 1), as opposed to the traditional pyramid:

Figure 1: „Network“ as wheel

Source: Webster, F.E., 1992, p.9.

Prior to the decision to enter into a strategic alliance, the company need to raise the question what is the basis for the competitive advantage of companies. If the company sees that some of its value chain activities are not efficient enough when performing independently, it should decide to seek a strategic partner. For a good number of companies, a strategic partnership, given the resources, expertise and capability they dispose, is the only way to participate successfully in the global marketplace.

Strategic alliances (SA) are specific agreements between two or more companies, which are regulating issues on dividing costs, risks and benefits associated with the development of new business. The company is faced with two problems when determines for this type of collaboration. The first one is choosing partners in the alliance, and the second one is managing alliance when it is formed. Choosing a partner depends on the objective that we have when deciding for a SA. The question is whether potential partners dispose with resources, expertise and the ability that allow to jointly realize business goals. Clearly defined mission and goals are the basis for the successful managing SA when it is created. There has to be a good management information system for prompt and corrective intervention, if actions are not consistent with long-term goals. It is suggested the central framework of alignment (Figure 2), which has five areas: the strategic, the organizational, the cultural, the personnel and operational harmonization, which determine the success of the alliance.

Figure 2: The five areas that determine the success of the alliance

Source: Das K.T., B.S. Teng, 1997, 61

The direct incentives or reasons that direct enterprise towards strategic alliances are:

1) to reduce the costs of new products development, 2) to obtain technology,

3) to obtain marketing or management know-how,

4) to go easier on one or more national markets or a regional market, and 5) to obtain capital for certain investments.

Strategic alliances are very popular, although empirical studies are indicating the high rate of failure. The prerequisite of success is mutual benefit of partners. An ideal partner would be competent, with resources and the ability, and with which there is a mutual trust. It could be even smaller companies. Often in literature, one can find the estimate that there are three factors that have contributed to the growth of strategic alliances (Guller,1991, 91):

1) technological advancement that influenced the change of traditional competitive advantages of companies,

2) increase of changes,

3) intensity and uncertainty of research and development, as well as product, and decrease in the duration of the product life cycle.

This kind of cooperation allows business entities to reduce the risk in operations, and find new ways to access the attractive markets. Competition in the field of technologies allows companies to have access to various technologies, not possessing by themselves. The globalization of markets is changing dimensions of foreign investors and creates the need for a flexible structure and new forms of organization to enable companies to successfully compete on the world basis. Some theorists believe that, according to certain estimates, a new phase in the evolution of cooperation between companies in the global economy will be the "company of relations".

It will comprise of a group of companies from different branches and countries that will have such a common goal to function like a single company. As used sources, so as achieved revenue will have enormous value and "company of relations" will be present in all major parts of the global market. This qualitatively new economic entity, will have two global competencies - the cost economics and the speed of responding to the market.

Given that today the term alliances could subsume all forms of cooperation between companies in the international economy, which represent higher quality than the usual market transactions, it is considered necessary that there is a home base for the competition in the branch, if you want to achieve the benefits of alliances. According to recent research (Milisavljević,Todorović, 2000, 234) business results of international alliances are reflected in following:

 Alliances are more efficient than the acquisitions of foreign companies for new business activities and on new geographic markets,

 Alliances between the strong and weak companies are giving good results,

 It is important that results of the alliances overcome initial goals and expectations,

 Alliances with equally strong partners have greater success than those where one partner has significantly larger financial participation,

 In more than 75% of analyzed alliances that have been completed, it the done in a way that the stronger partner annexed the weaker partner. Although acting promising, the alliances between business partners often do not provide expected results. The marketing of a company should estimate well the potential partner for alliance, because it often seems there are some good prospects, but which do not bring results in practice. Marketing needs to coordinate entering into alliance of complementary traits and qualities, because only such partnership achieves synergy. The aim in doing so, is to accomplish benefits for both partners. Marketing should continue to contribute fostering good, close relations and connections among partners, cooperation among personnel, with the clear role and the importance of the human factor. According to Porter (Porter, ME, 1990, 26) strategic alliances are an expensive business decision for the company. He thinks,

first of all, on costs of coordination, harmonizing objectives, fostering future competitor, giving up profits and more. Because of their existence, this author believes that their presence does not mean sustaining in the long run, but on the contrary, only short-term solution. None of the companies want to gain characteristics of mediocrity, relying on other independent companies to provide services that are vital to the competitive advantages of the specific company. The alliances, a particularly international, are complex to manage.

The international business environment of the modern era is experiencing a series of earthquakes that reflect changes in the structure and functioning of the community. On the one hand, more and more marketers are thinking in global terms, and on the other hand, trading blocks on the principle of regionalization are created. The question is, are the business blocks the direction of globalization, or the path that diverges from it? One thing is certain, the changes are large, and traditional and international companies are adapting by reorganization. The end of the last century and the beginning of this century, brought new forms of organization, which are less hierarchically formed, based on the model of the pyramid, and more flexible alliances based on the organizational network. Thus, by the development of new business methods, are created new methods of marketing, for managing new forms of business systems. The new organizational solutions and marketing application are necessary, in terms of adequate integration into the modern business environment.