Question

Dynamic alliance networks work best in industries: a. that are mature and stable in nature. b. where the coordination of product and global diversity is critical. c. that are characterized by predictable market cycles and demand. d. characterized by frequent product innovations and short product life cycles

Answer 1

Answer:

The correct answer is D.

Explanation:

An "Alliance Network" is a process that is used very frequently in almost every industry today. It is used in a situation where two or more firms collaborate to manufacture a single end product. It is like the division of labor but on a bigger scale. An example to this can be given as all iPhone screens are produced by a different company and shipped to Apple's factories only to be assembled to form the final end product.

Therefore Dynamic Alliance Networks can be said to work best in industries that have frequent innovations and short product life cycles such as in almost all aspects of technology. Continuing from the Apple example again, they get their screens from another company because they simply do not want to make a lot of investments to produc their own screens because the technology is developing too quickly and the products have short life cycles as stated in the answer. This is why they use Dynamic Alliance Networks to decrease the cost of their products and increase their revenues.

I hope this answer helps.