A virtual company uses networks to link people, assets, and ideas, enabling it to ally with other companies to create and distribute products and services without being limited by traditional
organizational boundaries or physical locations.
One company can use the capabilities of another
company without being physically tied to that company.
The virtual company model is useful when
a company finds it cheaper to acquire products, services, or capabilities from an external vendor or
when it needs to move quickly to exploit new market opportunities and lacks the time and
resources to respond on its own.