Johnathan Yow Jian Jia (13084413) Marketing Management Tutorial Group: 4
Reading 6: Collaborative advantage 1. Collaborative advantage is synergy achieved by integrating resources plus expertise of one organization and provides a foundation or counterbalance to “Competitive Advantage” 2. The 3 main fundamental characteristics of collaborative advantage is that they must yield benefits for the partners and they are more than just the deal. They are also alliances that both partners ultimately deem successful involve collaboration rather than mere exchange. Collaborative advantage cannot be controlled by formal systems but require a dense web at interpersonal connections and internal infrastructures that enhance learning. 3. There are also 3 varieties of relationships which are mutual service consortia that means similar industries pool their resources together to gain benefit too expensive to acquire alone. Joint ventures are companies pursuing an opportunity that requires capabilities from each of them and value-chain partnerships are supplier-consumer relationships. 4. Relationships between companies begin, grow and develop much like relationship between people. Like romances and alliances, they are built on hopes and dreams, what might happen if certain opportunities are pursued? 5. The 8 I’s that create a successful we are first individual excellence, importance, independence, investment, information, integration, institutionalization and integrity. 6. The 8 I’s show that both partners are strong and has a value to be added, relationships fits strategic direction of the partners, partners need and invest in each other, partners communicate and develop linkages and shared ways of operating, partner relationships are given a formal status with clear responsibilities and partners behave in honorable ways with each other. 7. There are 5 phases to collaborative advantage. First is selection and courtship where it involves self-analysis, chemistry and compatibility. Phase 2, engagement, is the broadening of the base of involvement and stakeholders approve of the alliance. Next comes setting up the housekeeping, there are problems and discovery of difference between the partners. Phase 4 is learning to collaborate and implementing the 5 stages of integrations. Finally is phase 5, which is the infrastructure of learning and changing from within.