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Co-opetition Strategies in Business

1. The document discusses an example of "co-opetition" between competitors DHL and UPS in the express delivery market. Due to financial losses by DHL, the two companies signed an agreement in 2008 for UPS to carry DHL packages in its air freight network for a fee. 2. Co-opetition involves both cooperation and competition between firms. It requires a careful balancing to provide sufficient benefits to both partners and keep the alliance together over the long term. 3. An unintended transfer of knowledge from one partner to another could provide a significant competitive advantage and doom the alliance unless the partner forebears from using that knowledge against the others.

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Nirwana Rasyid
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2 views1 page

Co-opetition Strategies in Business

1. The document discusses an example of "co-opetition" between competitors DHL and UPS in the express delivery market. Due to financial losses by DHL, the two companies signed an agreement in 2008 for UPS to carry DHL packages in its air freight network for a fee. 2. Co-opetition involves both cooperation and competition between firms. It requires a careful balancing to provide sufficient benefits to both partners and keep the alliance together over the long term. 3. An unintended transfer of knowledge from one partner to another could provide a significant competitive advantage and doom the alliance unless the partner forebears from using that knowledge against the others.

Uploaded by

Nirwana Rasyid
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

former CEO, coined the term co-opetitioti to dcscribe such simultaneous coaipetition and

cooperation arnong firms.'• One example is the collaboration between competitors DHL
and UPS in the express delivery market. DHL’s American delivery business was losing
money and UPS’ costly airfreight network had ezcess capacity. Under the terms of a 10-
year agreement signed in 2008, UPS carried DHL packages in its American airfreight net-
work tor a fee. The agreement covered only air freight, leasing both firms free to compete
in the rest of the express-pareel business.'• A careful balancing act, co-opetition involves
the careful management of alliance partners so that each partner obtains sufficicnt benefits
to keep the alliance together. A long-term view is crucial. An unintended transfer of
knowl- edge could be enough to provide one partner a significant compeütive advantage
over the others.• Unless that company forebears from using that knowledge against its
partners, the alliance will be doomed.

• *Target became a certified organic produce retailer in lants to from-loading washin• machines. spccially
2(O6 and now offers more than 500 choices of
tagged as Eco Options.
organic certified food. The company reduces waste
by giving away 7 million pounds of food annual Vowing to become “carbon neutral” by 2010.
ly. Timber- land intmduced Green Index tags, which
rate in prod- ucts on the use of greenhouse gas
• Home Dcpot offers more ttian 2,500 emissions, solvents, and organic materials.•'
environmenuilly friendly producis, ranging from all-
natural insect repel-

'I i
1. What industry forces might cause a propitious niche to d. What are the advantages and disadvantages of being
a disappear? first mover in an industry? Give some examples of first
2. 1s it possible for a company or business unit to follow mover and late mover firms. Were they
succcssiiil ? cost leadership strategy and a differenfiafion strategy si- 5. Why are many strategic alliances
temporary ? mu3uuicously? Why or why not:'
3. Is it possible for a company to have a sustainable
com- petii ivc advantage when its industry becomes
hypcr- competitive?

' i ' L . ‘ “ i i ‘. L .s F. i '


Select an indusoy io analyze. Idcntify companies for each of Porter’s four competitive strategies. How many different kintls
of differeniiation strategies can you find?
ŒDUsTRY:
Cost Leadership:
Differentiation:
Cost Focus.
Differentiation Focus:

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