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The nature of strategic alliances and their uses in small business:
Strategic alliances permit business firms to combine their resources without compromising their independent legal status.
These alliances may be formed by two or more independent businesses to achieve some common purpose. For instance, a large corporation and a small business may form an alliance or two or more small businesses may collaborate on a joint project.
For example, the Ford Motor Company arranged a joint venture with the Japanese firms,
Mazda and
Nissan, to manufacture automatic transmissions.
Another example is GoCARD. GoCARD is a network formed by Wolan's Five Fingers Inc. and two other firms in Los Angeles and Chicago .
This alliance relationship has enabled them to sell national distribution to big accounts such as the Gap, Tanqueray, and Hanes.
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