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Competitive and Collaborative

Strategies

By: Harsh Pratap Singh

Prateek Shukla

Naman Gaur

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General Environment Social, Technological, Economic, Ecological, and

political forces

Task Environment

Customer and buyer power, rivalry amongcompetitors, substitute products/services, andpotential new entrants

Enacted Environment Managerial perceptions and representations of

the environment

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Dynamism - the extent to which theenvironment changes unpredictably

Complexity - the number of significantelements the organization must monitor

Information Uncertainty - the extent towhich environmental information isambiguous

Resource Dependence - the degree towhich an organization relies on otherorganizations for resources

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Resource DependenceLow High

Low

High

Information

Uncertainty

Minimal

environmental constraint

and need to be responsiveto environment

Moderate constraint

and responsiveness

to environment

Moderate constraintand responsiveness

to environment

Maximal

environmental constraint

and need to be responsive

to environment

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Strategic Analysis

Strategic Choice

Designing the Strategic Change Plan

Implementing the Strategic ChangePlan

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Strategy

S1

Organization

O1

Organization

O2

Strategy

S2Strategic

ChangePlan

Strategic Analysis Strategic Choice

Implementation

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Strategic Analysis Assess the readiness for change and topmanagements ability to carry out change

Diagnose the Current Strategic Orientation

Strategic Choice

Top management determines the content ofthe strategic change

Designing the Strategic Change Plan

Development of a comprehensive agenda to

achieve the change Implementing the Strategic Change Plan

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Merger - the integration of twopreviously independent organizationsinto a completely new organization

Acquisition - the purchase of oneorganization by another for integrationinto the acquiring organization.

Distinct from strategies for collaboration,such as alliances and networks, becauseat least one of the organizations ceasesto exist.

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Pre-combination Phase The organization must identify a candidate

organization, work with it to gatherinformation about each other, and plan the

implementation and integration activities Legal Combination Phase

The two organizations settle on the terms ofthe deal, gain approval from regulatory

agencies and shareholders, and fileappropriate legal documents

Operational Combination Phase Implementing the operational, technical and

cultural integration activities

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Involve two or more organizations who agree to

work together to achieve their objectives

Align and coordinate organization strategies

goals structures and processes as they become

interdependent

Allow organizations to perform tasks that are too

costly and complicated for single organizations to

perform

Also known as transorganizational systems

including alliances and networks

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When two organizations formally agree topursue a set of goals

There is sharing of resources, intellectualproperty, people, capital, technology,

capabilities or physical assets Common alliances are licensing agreements,

franchises, long-term contracts, and jointventures

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Alliance Strategy Formulation Clarify the business strategy and why an

alliance is needed

Partner Selection Leverage similarities and differences to create

competitive advantage

Alliance Structuring and Start-up Build and leverage trust in the relationship

Alliance Operation and Adjustment

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Involves three or more companies joinedtogether for a common purpose

Each organization in the network hasgoals related to the network as well asthose focused on self-interest

Characterized by two types of change:creating the initial network(transorganizational development) andmanaging change within an establishednetwork

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Create instability in the network Manage the tipping point

The Law of the Few

Stickiness

The Power of Context

Rely on self-organization

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THANK Y