A temporary network of independent companies, linked by information technology, is known as a virtual corporation. This network helps companies share skills, costs and marketing, according to "Business Week."
Safari Notebook Computer
To produce its Safari notebook computer, American Telephone & Telegraph Co. formed a virtual corporation with two Japanese companies. The company used Marubeni Trading Co., which partnered with Matsushita Electrical Industrial Co. to produce the computer.
Partnerships with more than 100 companies allowed MCI Communications Corp. to obtain major contracts.
IBM and Apple
Although they are usually competitors, IBM and Apple formed a virtual corporation for mutual benefit. IBM and Apple teamed up with Motorola to develop an operating system and microprocessor for a new generation of computers.
Corning Inc. created a virtual corporation with 19 partnerships in 1993. This accounted to for 13 percent of the corporation’s earnings during this year.
Apple Computers partnered with Sony Corp. in 1991to produce its PowerBook notebook computers. Partnering with Sony helped create a less expensive version of the PowerBook.
- business deal(agreement) image by Alexey Klementiev from Fotolia.com