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Q3-4-5 - Essay Example

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For organizations to align together there are certain cohesion factors and complexities that need to be taken care of. But more than that change in market…
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Download file to see previous pages... Industry partnerships also come in shape when organizations are socially robust, having a strong backbone of top executives with respect to size, presence and connections (Kathleen M. Eisenhardt & Claudia Bird Schoonhoven, 1996).
To be specific, there are three major aspects of partnerships: foundation, formation, and structural preferences. The ‘foundation’ for partnership implies to the likelihood of organizations to add value to the overall business by their shared resources. When we say ‘formations’, it refers to properties such as limitation of convenience and commutability. By structural preferences we mean the types of ventures, which can be equity joint ventures, minority equity alliances, bilateral contract-based alliances, and unilateral contract-based alliances (T. K. Das & Bing-Sheng Teng, 2000).
Strategic business partnerships enable organizations to achieve competitive advantage through access to shared resources. These shared resources may be based on potential markets, technology, capital, or human resources. As organizations have to input less individually, their goals are more focused thus leading to improved performance.
Partnering organizations share their limited resources and business responsibilities as per the availability and expertise to expedite the process. It’s best to focus one’s resources on what they do the best and partner for the rest. Mostly those companies agree to work together which have same goal but lack in certain areas, let it be budgets, human resources, or technical expertise yet having same set of goals or share same purpose of existence.
A research company Trendsetter Barometer, PWC states that “nearly 2/3 of fast-growing companies are involves in strategic alliances. In average, each fast-growing company is engaged in 5 different types of strategic alliances may it be related to joint marketing & promotion, joint selling or distribution, technology licenses, ...Download file to see next pagesRead More
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