Best Small Cos. Fleming will integrate Kmart's buying, inventory control and logistics with its own. Of course, strategic partnering isn't new.
Joint ventures can grow into valuable assets.
Globalization is a major force behind partnering. When Wal-Mart wanted to expand in Mexico in anticipation of Nafta, it formed a joint venture with Mexico's Cifra. Cifra gave Wal-Mart a firm base and greatly shortened its learning curve about the Mexican market. Wal-Mart has taken that experience and applied it to Brazil and other parts of Latin America. Technology, too, facilitates strategic alliances, with the World Wide Web serving as the network linking child to parent and parent to parent.