1 / 24

Varis C. 5180046 Worakit R. 5180139 Kamornrat P. 5180293

Collaborating with competitors. Varis C. 5180046 Worakit R. 5180139 Kamornrat P. 5180293. INTRODUCTION. Alliance among competitors have risk One study estimate that U.S. company lost $50 billion a year in 1995

Download Presentation

Varis C. 5180046 Worakit R. 5180139 Kamornrat P. 5180293

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Collaborating with competitors Varis C. 5180046Worakit R. 5180139Kamornrat P. 5180293

  2. INTRODUCTION Alliance among competitors have risk One study estimate that U.S. company lost $50 billion a year in 1995 However alliances among competition are more popular, estimated 10-30 % of alliances in 2000

  3. INTRODUCTION He give a new term to describe the process of collaborating with competitor “co-opetition” Ray Noorda, CEO of Novell

  4. Example of alliances involving co-operation Ten years research program to reinvent the modern camera

  5. Example of alliances involving co-operation To sell their food products Online

  6. Database Business Online Service To gain greater scale The automotive business to business exchange

  7. Why Co- opetition is important • The rise of the Internet and the concomitant need for competitors to define and expand new market • The blurring of industry boundaries

  8. Not all Co-opetitions are success Success Because • They can manage the balance between co-operation and conflict Fail Because • Lack awareness of cause and challenges of co-opetition

  9. Drivers of Co-opetition Competitor VS Non Competitior The degree of competitive threat in order to set strategy

  10. Motivation for collaboration among rival Traditional Reason • Setting standard: Shift from heavy to high technology industry • Sharing risk : Developing ne innovation such as biotechnologies • Entering emerging market : New Customer and Low cost production

  11. Motivation for collaboration among rival New Reason in 1990 • Expanding Product Line • Reducing Cost

  12. Motivation for collaboration among rival • Gaining Market share • Creating new business

  13. Managing the Risks of Co-opetition • 5 important risks • Technology leakage • Telegraphing Strategic Intention • Customer Defection • Slow Decision Making • Business or Asset Fire Sale

  14. Schwinn & Giant

  15. Risk 1: Technology Leakage • Occurs when a partner use alliance to acquire certain know-how, which is then use against you later

  16. Solutions • Controlling information • Contact • Rules and policy

  17. Risk 2 Telegraphing Strategic Intention • The risk is when your competitor knows your strategic plans • The direct transfer of information to partner

  18. Solution • Managing the information for example, 1. Developing guideline for sharing information 2. Teach the manager what information is strategic

  19. Risk 3 Customer Defection • The competitor may get into contact with your customer. • Partner might increase its brand awareness, customer understanding and direct personal relationship to steal customer away.

  20. Solution • Never give full contact of customer to partner • Allow partner to access to customer only when selling jointly product

  21. Risk 4: Slow Decision Making

  22. Solution • They should make the agreement on who are responsible in which area • Focus on basic of decision making identify the most important decision that define which decision maker will participate in those decision

  23. Risk 5 Business or asset fire sale • create the risk of a fire sale • firm will be force to sell its interest in the alliance at a below market price. • After they separate then the third party will be much less in the asset once they tied up the joint venture

  24. Solution • Favor the independent joint venture structure, which will reduce cost and increase the interest of other buyer • Avoid Joint venture

More Related