Competitive and Collaborative

Strategies
By: Harsh Pratap Singh
Prateek Shukla
Naman Gaur
General Environment
Social, Technological, Economic, Ecological, and
political forces
Task Environment
Customer and buyer power, rivalry among
competitors, substitute products/services, and
potential new entrants
Enacted Environment
Managerial perceptions and representations of
the environment
Dynamism - the extent to which the
environment changes unpredictably
Complexity - the number of significant
elements the organization must monitor
Information Uncertainty - the extent to
which environmental information is
ambiguous
Resource Dependence - the degree to
which an organization relies on other
organizations for resources
Resource Dependence
Low High
Low
High
Information
Uncertainty
Minimal
environmental constraint
and need to be responsive
to environment
Moderate constraint
and responsiveness
to environment
Moderate constraint
and responsiveness
to environment
Maximal
environmental constraint
and need to be responsive
to environment
Uniqueness
All organizations possess unique bundles of
resources and processes that represent the source
of competitive advantage
Value
Organizations that arrange their unique resources
and processes to produce products or services that
have value (low cost, desirable features)
Difficult to Imitate
Competitive advantage is sustainable when it is
difficult to duplicate




Strategic Analysis
Strategic Choice
Designing the Strategic Change Plan
Implementing the Strategic Change
Plan
Strategy
S1
Organization
O1
Organization
O2
Strategy
S2 Strategic
Change
Plan
Strategic Analysis Strategic Choice
Implementation
Strategic Analysis
Assess the readiness for change and top
managements 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
Merger - the integration of two
previously independent organizations
into a completely new organization

Acquisition - the purchase of one
organization by another for integration
into the acquiring organization.

Distinct from strategies for collaboration,
such as alliances and networks, because
at least one of the organizations ceases
to exist.
Diversification
Vertical integration
Gaining access to global markets,
technology, or other resources
Achieving operational efficiencies,
improved innovation, or resource sharing
Pre-combination Phase
The organization must identify a candidate
organization, work with it to gather
information about each other, and plan the
implementation and integration activities
Legal Combination Phase
The two organizations settle on the terms of
the deal, gain approval from regulatory
agencies and shareholders, and file
appropriate legal documents
Operational Combination Phase
Implementing the operational, technical and
cultural integration activities
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
When two organizations formally agree to
pursue a set of goals
There is sharing of resources, intellectual
property, people, capital, technology,
capabilities or physical assets
Common alliances are licensing agreements,
franchises, long-term contracts, and joint
ventures
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
Involves three or more companies joined
together for a common purpose
Each organization in the network has
goals related to the network as well as
those focused on self-interest
Characterized by two types of change:
creating the initial network
(transorganizational development) and
managing change within an established
network

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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