can i have answer for this 3 qustions into the case below IBM case 1-What are th
ID: 459396 • Letter: C
Question
can i have answer for this 3 qustions into the case below IBM case
1-What are the rationales in adopting cooperative strategy?
2- In your opinion and from your own experience in your current organization, what are the drawbacks and challenges to implement this strategy?
3-How would your organization leverage its core competencies in cooperative strategy?
A company widely known throughout the world, IBM's 350,000-plus employees design, manufacturer, sell, and service advanced information technologies such as com- puter systems, storage systems, software, and micro- computing rival Sun Microsystems. Expectations for this corporate-level cooperative strategy (corporate-level cooperative strategies are discussed later in the chapter) were high in that executives in the two companies labeled it a "comprehensive relationship" that represented a lectronics. The firm's extensive lineup of products and tectonic shift in the market landscape." Essentially, the irms intended to cooperate on server technologies so that Sun's Solaris operating system could run on IBMs servers and eventually on its mainframes. Gaining ground on Hewlett-Packard in the battle for leadership in the global server market is a key objective for this cooperative arrangemen services is grouped into three core business units- ystems and Financing, Software, and Services As is true for all companies, IBM uses three means to growernal developments (primarily through innova tion), mergers and acquisitions (such as IBM's recent purchase of Internet Security Systems to boost its abilit o deliver security solutions to corporations), and coop rative strategies. By cooperating with other companie BM is able to leverage its core competencies to grow and to serve the needs of certain-sized firms. For example improve its performance 1BM cooperates with companies IBM's collaboration with SAP (the world's leading provider of business software) seeks to serve the Through cooperative strategies (e.g., strategic alli- ances and joint ventures, both of which are defined and discussed in this chapter), IBM finds itself working with a variety of firms in order to deliver products and services However, IBM has specific performance-related objec tives it wants to accomplish as it engages in an array of cooperative arrangements. Some of the firm's coopera needs that midsized companies in 12 countries have for world-class business applications built on reliable infra- structures. An estimated 80 million small and midsized firms on a global basis can benefit from the joint ser- vices of IBM and SAP These possibilities from working ogether support the firms' intention of expanding their ogether support the firms' intention of expanding t tive relationships are with competitors. Actually, deciding ive relationships are with competitors. (Actually, deciding cooperative relationship. IBM also has a global alliance with Lenovo, the company that purchased its personal computer (PC) business. With a focus on firms in certain to cooperate with a competitor in order to compete in a particular market or market segment is becoming incre ingly common.) In late 2007, IBM teamed with longtime industries (health care, financial services, education,Explanation / Answer
Co-operative strategies are followed by various companies in the current profit driven world because of not a single reason.
This way a company can leverage their core competencies.
They can keep concentrating on their strengths rather than diversifying into something which are not competent enough in.
A coming and more focused goal from more than one company, that are there in the collaboration.
Resources and expenses are shared on more optimized manner.
Customer's trust increases on seeing two or three top notch companies getting together.
Greater penetration into the markets where a company's presence is weak.
Greater benefit from economies of scale.
All the above points reiterate the fact that co-operative will work wonders.
But there is anyways a negative shade to something that has positive side. Drawbacks of the same strategy are
Varying management styles
One partner trying to outsmart the other
Transparency issues among partners.
Different operational work flows used by managements.
To leverage this strategy, even before identifying partners for co-operation, an organization had to understand clearly what their unique selling properties are. How far that company can expand through organic or inorganic growth.
If they are sure that something cannot be expanded, only then the next is thought about.
Here choosing the right partner is so important, who brings additional exposure to current company.
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