Essay about Collaborate with Your Competitors and Win

2348 Words Aug 31st, 2010 10 Pages
Collaborate with your Competitors and Win
Gary Hamel, Yves L. Doz, and C.K. Prahalad


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
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You cannot make a Western company want to learn. Western companies have certain arrogance after decades of leadership that detracts from their ability to learn.

Why should one collaborate with competitors? .

1. In order to strengthen competitive advantages or core competencies A competitive advantage is an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and service that justify similar, or possibly higher, prices. When two companies collaborate they become more equipped to face the big competitor in the market by gaining access to a unique feature that was missing for them to cater to a huge or a bigger market. 2. Expand technological evolution at a reasonably low cost Creating a separate team to develop technology adds to a lot of cost, it makes more sense to utilize the technology that is already available in the market and customize it as per your needs. Collaborating with competitors gives easy access to the required technology and also a chance to the collaborator to learn from the other partner’s mistake. 3. Grow market access at a low cost Collaborators can gain easy access to markets through their partners who already have access to desired consumers and markets. The collaborators can save money and time that they would have otherwise invested on research and development in order to access the same market and to

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