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Collaborate with Your Competitors and Win Essay

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Collaborate with your Competitors and Win Gary Hamel, Yves L. Doz, and C.K. Prahalad Summary This article discusses that collaboration between competitors can be a beneficial experience for all member companies. Three conditions are specified for creating a positive collaborative environment, first that the partner's goals converge while their competitive goals diverge. If the two firms are working on similar technologies to support different core businesses, then there is a higher chance for successful collaboration and a lower chance for competitive disturbance. If, both companies are chasing a larger player in the industry, then both companies are motivated to work with each other to stand against the larger player. If both …show more content…

Strategic Alliance A strategic alliance is a cooperative strategy wherein allying firms pool their resources in order to pursue specific market opportunities The analysis of 15 mergers of three main types: four intra-European alliances, two European-Japanese alliances, and seven U.S.-Japanese alliances found that collaboration is often used by successful businesses. Alliances between Asian companies and Western rivals seem to work against the Western partner. Collaboration is competition in a different form. Companies have to enter collaborations knowing that competition still exists. They must have clear strategic objectives, and understand how their partners’ objectives will affect their success. Harmony is not the most important measure of success. Most winning alliances do not always have win-win circumstances. As competitive competencies expand, disagreement will happen between the associates over who has the right to the rewards of the partnership. Cooperation has limits. Organizations must protect against competitive compromise. Companies need to ensure that workers at all levels recognize what corporate information is off limits to the collaborator. Providing access to too much information can make one more open to losing market share to your collaborator. Learning from partners is paramount. Remember that Asian companies focus on learning, while

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