19 - competitive and collaborative strategies

7/28/2019 19 - Competitive and Collaborative Strategies

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Competitive and Collaborative

Strategies


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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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Uniqueness All organizations possess unique bundles of

resources and processes that represent the sourceof competitive advantage

Value Organizations that arrange their unique resources

and processes to produce products or services thathave value (low cost, desirable features)

Difficult to Imitate Competitive advantage is sustainable when it is

difficult to duplicate

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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 of

the 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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Diversification

Vertical integration

Gaining access to global markets,technology, or other resources

Achieving operational efficiencies,improved innovation, or resource sharing

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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

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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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Identification Convention Organization Evaluation

Who should

belong to the

transorganizational

System (TS)?

Relevant skills,

knowledge,

and resources

Key stakeholders

Should a TS

be created?

Costs and

benefits

Task

perceptions

How to organize

for task

performance? Communication

Leadership

Policies and

procedures

How is the TS

performing? Performance

outcomes

Quality of

interaction

Member

satisfaction


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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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19 - competitive and collaborative strategies

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