The Advantages of Strategic Alliances and Network Structures as Recent Innovations in Organizational Architecture

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In today’s environment, building sustainable value for customers and shareholders requires forming effective alliances between companies. Alliances are essential building blocks for companies to achieve stronger and more efficient valued presence. Alliances are now an essential in the business world, now and in the future. Strategic Alliances offer means for companies to approach new markets, expand geographic reach, gain cutting- edge technology and complement skills and core competencies relatively quick. Most markets are moving somewhat slow so it’s impossible to be up-to-date with all technology, resources and information needed to attack the competition. Some firms place alliance management under a centralized organization while others prefer to spread responsibility for alliances across all business units. Organizational structures are having a more flexible approach to organizational management and allowing the enterprise to innovate quicker and adjust more rapidly. A large part of this organizational flexibility has been possible due to strategic alliances can concentrate on their core strength’s while relying on a trusted partner to perform complementary operations. One of the objectives of corporate strategy is to specify the organation’s field and reap the benefits through long-term strategic alliances among firms to share the costs, risks, and earnings of business operations. As firms scale backs their internal focus and strengthens expertise in selected areas. Some of advantages of strategic alliances include gaining capabilities, for example: an enterprise may want to generate something or to question certain resources that lacks in wisdom, technology and skill that the other firm might have. In this viewpoint in later time the enterprise also could then use

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