A strategic alliance is said to exist when two or more independent firms cooperate in the development, manufacture, or sale of products or services. Such alliances between firms are commonly grouped into three separate units: nonequity alliances, equity alliances, and joint ventures. On February 14, 2012 P&G announced to the public that the company has formed a strong strategic partnership with the Alliance to Save Energy (the Alliance). This type of strategic partnership represents a type of contractual alliance between P&G and the Alliance that is not considered to be a formal legal partnership (nonequity alliance). In other words, these cooperating firms agree to work together to publicize the environmental and energy benefits of washing laundry in cold water, but they have not taken equity positions in each other.

Kateri Callahan, Alliance to Save Energy President, said, “If we can overcome consumer barriers to cold water washing, consumers would find it easy to be more energy efficient and to reduce their home energy bills. With just a switch of a dial, cold water washing is one of the simplest ways to save energy and money and benefit the environment.” Surprisingly, the heating of water while washing laundry is considered to be a huge use of energy in many American households. In fact, the heating process of cold water can account for up to 80% of the total energy required to wash a load of laundry in America. One of the major goals of this strategic partnership is to reach 100 million U.S. households by Earth Day 2013 with educational information that will explain the benefits of washing laundry with cold water. As long as these two organizations commit, coordinate, and trust one another to the highest level there is no apparent reason to believe that this partnership will not succeed.