Co-Opetition: the Organisation of the Future.

Topics: Interpersonal relationship, Strategic management, Price fixing Pages: 12 (3749 words) Published: April 20, 2008
Mosad Zineldin.
A)This article refers to a strategic tool being increasingly employed by management executives Co-opetition: The organisation of the future. known as co-opetition in which Zineldin considers that in a global market, organisations that are self governing may be able to combine resources and work as a team. This involves pooling resources for a certain objective whilst remaining independent of each other yet still challenging each other and other rivals for the same business. Zineldin refers to his earlier work suggesting that co-opetition is a kind of business philosophy in which the strategic management of companies should involve steering the business into positive long term relationships with other established players in the field. This should also include competitors, with the overall intention of improving best practice and moving the industry forward. These amalgamations may be useful in one particular area of business, for example research and development without affecting the drive for sales at the marketing stage. (It is imperative for a successful alliance and relationship between the collaborators to communicate and cooperate in an atmosphere of frank debate, trust, interdependence, and mutual positive expectation so that the mutual benefits and interests may be achieved.) Zineldin, M. (1998) Zineldin acknowledges that whilst the organisations may correlate business activities to achieve mutually beneficial exchanges and add value to each others organisations, they will challenge each other in order to maximise their own share holder’s wealth. He also suggests that promotion of a culture of best practice and striving for excellence is not the same goal as merely doing better than one’s competitors. He justifies this using evidence gained from articles by (Bengtsson and Kock, 2000),(Hensler (2000)and (Kohn (1992) He draws comparisons from evolutionary theories suggesting that The Darwinian survival of the fittest theory has an antethisis, serial endosimbiosis theory (SET) quoting Margulis(1998) and (Hensler 2000) He theorises that in evolutionary processes cells of different histories and abilities merge to evolve into more complex organisms. Zineldin refers to his earlier work where he likens strategic planning to Business ecology in which competitors in the market form pragmatic coalitions to fit in with the economic climate. Zineldin, M. (1998) Zineldin suggests that by adhering to this paradigm, forward thinking organisations will embrace a culture of co-operation and that competitors will aim to compliment each other’s businesses, respectively adding value to each organisation.

The organisations are much more likely to take risks if they feel that they have mutual goals and objectives. Zineldin evidences this theory giving examples referred to by Bengtsson and Kock (2000) (see appendix 1.) Zineldin claims that to successfully implement a co-opetition strategy •the organisations must be willing to be involved in an interactive exchange relationship •The relationship must be mutually rewarding.

Each party must have assets to bring to the relationship. •Terms must be agreed to enable each party to benefit from the relationship. •The parties must be able to communicate and interact with each other. •The parties must be able to agree on ethics, level of commitment and interdependence. •They maintain confidentiality and do not abuse the information they are in receipt of. •They have a relationship built on flexibility, trust and respect. Zineldin suggests that if these conditions are implemented the result will generally be a mutually beneficial experience with a healthy culture of competition, interdependence and collaboration. This appears to mirror (Foti and Ross. Jun2004,) Before seeking partners Executives should ask:

On what terms do we compete and on what specific activities are to be included in the cooperation? •What is expected of each company?
How will the revenue...
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