| An
Integrated Organizational Alliance Strategy
One
of the main challenges that a small company must overcome
is to compete with larger business organizations that are
able to create specific divisions and departments to focus
on different management and operational functions.
By
doing so larger organizations can not only obtain "efficiencies
of scale" but can also develop greater expertise and
therefore increase product and service quality.
Smaller
companies can supposedly be more efficient because they can
operate with lower "overhead" costs, move with greater
speed and provide better customer, personalized customer service.
These were the main traditional advantages of small businesses.
However,
with the development of more sophisticated and less expense
information and communications technologies, large corporations
have learned to move faster, decrease overhead costs and improve
customer service. It has become more difficult for smaller
companies to compete because they have not been able to use
the new technologies as well as the large corporations.
To
compete more effectively smaller businesses need to band together
while maintaining their independence. The Enterprise Holdings
System has been designed to do this by integrating support
functions through an alliance of micro businesses using the
Keiretsu model.
The
same information and communications technologies that large
corporations have used to become more effective and efficient
are being applied by the Enterprise Holdings System to increase
the competitive capabilities of partner companies.
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