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COMPETITIVE STRATEGIES :3CS
COMPETITION, COLLABORATION, COOPETITION
by
M.P. SINGH, Managing Consultant, BYG Advantage Ltd
MBA(International Business), Indian Institute of Foreign Trade New Delhi
B.Sc.( Electronics & Communication Engineering),NIT Kurukshetra
STRATEGY- WORKING DEFINITION
“STRATEGY IS INTEGRATED SET OF CHOICES THAT POSITION A
FIRM, IN AN INDUSTRY, TO EARN SUPERIOR RETURNS OVER
LONG PERIOD”
“ STRATEGY IS INTEGRATED SET OF CHOICES THAT POSITION
AN ORGANISATION, IN ITS ENVIRONMENT, TO EARN SUPERIOR
MISSION PERFORMANCE OVER LONG PERIOD”
28-Mar-18KR MANGALAM UNIVERSITY 2
LEADERSHIP ROLE
• Leadership Develop Vision Guiding principals
• Leadership plays important role in strategic management mainly in
developing vision for an organization then its shared, co-owned or
imposed but remains guide even when leader gets removed from the
system
• Vision & Mission in the mind of people provide
• Sense of purpose
• Sense of direction
28-Mar-18KR MANGALAM UNIVERSITY 3
STRATEGY
• A strategy is the pattern or plan that
• Integrates major goals, policies and action sequences
• Into cohesive whole
• A well-formulated strategy helps to
• Marshal & allocate an organization’s resources
• Into unique & viable posture
• Based on its relative internal competencies & shortcomings
• Anticipated changes in the environment, and
• Contingent moves by intelligent opponents
28-Mar-18KR MANGALAM UNIVERSITY 4
James Brian Quinn - The Strategy Process: Concepts and Contexts
COMPETITIVE STRATEGY
KR MANGALAM UNIVERSITY 28-Mar-18 5
COPETETITIVE
POSITIONING
PRODUCTION DISTRIBUTION LOGISTICS SERVICES
STRATEGIC TRIANGLE ( KENICHI OHMAE)
28-Mar-18KR MANGALAM UNIVERSITY 6
COMPETITIVE STRATEGY
KR MANGALAM UNIVERSITY 28-Mar-18 7
Customer CircleCompany circle
Competitor circle
A
SWOT ANALYSIS
KR MANGALAM UNIVERSITY 28-Mar-18 8
SWOT INTERACTION
KR MANGALAM UNIVERSITY 28-Mar-18 9
VALUE CHAIN MODIFIED
ManufacturingR&R&D
28-Mar-18KR MANGALAM UNIVERSITY 10
DETERMINANTS OF INDUSTRY PROFITABILITY ( INDUSTRY
STRUCTURE)
KR MANGALAM UNIVERSITY 28-Mar-18 11
COMPETITIVE ADVANTAGE
KR MANGALAM UNIVERSITY 28-Mar-18 12
COMEPTITIVE ADVANTAGE
DIFFERENTIATION
LOW COST
COMPETITIVE STRATEGY
KR MANGALAM UNIVERSITY 28-Mar-18 13
COMPETITION
KR MANGALAM UNIVERSITY 28-Mar-18 14
COMPETITIONS- COMPETITIVE POSITIONING (
AIRLINES)
KR MANGALAM UNIVERSITY 28-Mar-18 15
Indigo
Spice jet
Vistara
Alliance Airline
Chartered plane
Service providers
Air India
Jet Airways
Cost Differentiations
BroaderNarrow
COMPETITIONS- COMPETITIVE POSITIONING ( E-
COMMERCE APPARELS)
KR MANGALAM UNIVERSITY 28-Mar-18 16
Amazon
Flipkart
Jabong
Myntra
Limeroad
Tatacliq
Pernias Pop Up Shop
Shopclues
Snapdeal
Cost Differentiations
BroaderNarrow
COOPERATION/COLLABORATION
• When two or more organizations work together to realize or achieve
a common goal.
• Collaboration is similar to cooperation
• A business level cooperative strategy is the one in which a number
of firms work together to attain some common goal. The firms share
their resources and the capabilities they have to create some
competitive advantage in the form of new products or services
• Cooperation established through strategic alliances
KR MANGALAM UNIVERSITY 28-Mar-18 17
CROSS INDUSTRY COLLABORATION
KR MANGALAM UNIVERSITY 28-Mar-18 18
STRATEGIC ALLIANCES
• Company A= Foreign Company B = Host Country
• A & B can share value chain ( non equity alliance)
• A& B may form joint venture and new company C takes birth ( equity
alliance)
• A may enter into technology licensing or trade mark licensing
• X coalition – either down stream or upstream are shared
• Y coalition – if all functions shared
28-Mar-18KR MANGALAM UNIVERSITY 19
STRATEGIC ALLIANCES
KR MANGALAM UNIVERSITY 28-Mar-18 20
COOPETITION
• Coopetition is the simultaneous competition and cooperation
between two or more rivals competing in global markets. It captures
the duality of cooperation and competition between a given pair or
among a group of rivals
• Competition may occur at multi-points and via multi-units, while
cooperation represents a joint effort for mutual gains
• Under coopetition, the relationship between rivals is a simultaneous,
inclusive interdependence
• The interdependence entails competitive and collaborative activities
undertaken in the pursuit of global reach, expansion, and profit
KR MANGALAM UNIVERSITY 28-Mar-18 21
COOPETITION
• Three properties of coopetition include:
• Cooperation and competition coexist between the same global rivals
• Cooperation and competition exist during one period
• Coopetition may occur at corporate-, division-, or subsidiary-levels,
depending on a firm’s strategic intent and organizational needs
KR MANGALAM UNIVERSITY 28-Mar-18 22
COOPETITION – EXAMPLES
KR MANGALAM UNIVERSITY 28-Mar-18 23
+
+ +
+
4G Network roll out
STRATEGY
KR MANGALAM UNIVERSITY 28-Mar-18 24
THANK YOU
maneshpratap@gmail.com

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Competitive Strategies : 3C -Competition, Collaboration & Coopetition

  • 1. COMPETITIVE STRATEGIES :3CS COMPETITION, COLLABORATION, COOPETITION by M.P. SINGH, Managing Consultant, BYG Advantage Ltd MBA(International Business), Indian Institute of Foreign Trade New Delhi B.Sc.( Electronics & Communication Engineering),NIT Kurukshetra
  • 2. STRATEGY- WORKING DEFINITION “STRATEGY IS INTEGRATED SET OF CHOICES THAT POSITION A FIRM, IN AN INDUSTRY, TO EARN SUPERIOR RETURNS OVER LONG PERIOD” “ STRATEGY IS INTEGRATED SET OF CHOICES THAT POSITION AN ORGANISATION, IN ITS ENVIRONMENT, TO EARN SUPERIOR MISSION PERFORMANCE OVER LONG PERIOD” 28-Mar-18KR MANGALAM UNIVERSITY 2
  • 3. LEADERSHIP ROLE • Leadership Develop Vision Guiding principals • Leadership plays important role in strategic management mainly in developing vision for an organization then its shared, co-owned or imposed but remains guide even when leader gets removed from the system • Vision & Mission in the mind of people provide • Sense of purpose • Sense of direction 28-Mar-18KR MANGALAM UNIVERSITY 3
  • 4. STRATEGY • A strategy is the pattern or plan that • Integrates major goals, policies and action sequences • Into cohesive whole • A well-formulated strategy helps to • Marshal & allocate an organization’s resources • Into unique & viable posture • Based on its relative internal competencies & shortcomings • Anticipated changes in the environment, and • Contingent moves by intelligent opponents 28-Mar-18KR MANGALAM UNIVERSITY 4 James Brian Quinn - The Strategy Process: Concepts and Contexts
  • 5. COMPETITIVE STRATEGY KR MANGALAM UNIVERSITY 28-Mar-18 5 COPETETITIVE POSITIONING PRODUCTION DISTRIBUTION LOGISTICS SERVICES
  • 6. STRATEGIC TRIANGLE ( KENICHI OHMAE) 28-Mar-18KR MANGALAM UNIVERSITY 6
  • 7. COMPETITIVE STRATEGY KR MANGALAM UNIVERSITY 28-Mar-18 7 Customer CircleCompany circle Competitor circle A
  • 8. SWOT ANALYSIS KR MANGALAM UNIVERSITY 28-Mar-18 8
  • 9. SWOT INTERACTION KR MANGALAM UNIVERSITY 28-Mar-18 9
  • 11. DETERMINANTS OF INDUSTRY PROFITABILITY ( INDUSTRY STRUCTURE) KR MANGALAM UNIVERSITY 28-Mar-18 11
  • 12. COMPETITIVE ADVANTAGE KR MANGALAM UNIVERSITY 28-Mar-18 12 COMEPTITIVE ADVANTAGE DIFFERENTIATION LOW COST
  • 13. COMPETITIVE STRATEGY KR MANGALAM UNIVERSITY 28-Mar-18 13
  • 15. COMPETITIONS- COMPETITIVE POSITIONING ( AIRLINES) KR MANGALAM UNIVERSITY 28-Mar-18 15 Indigo Spice jet Vistara Alliance Airline Chartered plane Service providers Air India Jet Airways Cost Differentiations BroaderNarrow
  • 16. COMPETITIONS- COMPETITIVE POSITIONING ( E- COMMERCE APPARELS) KR MANGALAM UNIVERSITY 28-Mar-18 16 Amazon Flipkart Jabong Myntra Limeroad Tatacliq Pernias Pop Up Shop Shopclues Snapdeal Cost Differentiations BroaderNarrow
  • 17. COOPERATION/COLLABORATION • When two or more organizations work together to realize or achieve a common goal. • Collaboration is similar to cooperation • A business level cooperative strategy is the one in which a number of firms work together to attain some common goal. The firms share their resources and the capabilities they have to create some competitive advantage in the form of new products or services • Cooperation established through strategic alliances KR MANGALAM UNIVERSITY 28-Mar-18 17
  • 18. CROSS INDUSTRY COLLABORATION KR MANGALAM UNIVERSITY 28-Mar-18 18
  • 19. STRATEGIC ALLIANCES • Company A= Foreign Company B = Host Country • A & B can share value chain ( non equity alliance) • A& B may form joint venture and new company C takes birth ( equity alliance) • A may enter into technology licensing or trade mark licensing • X coalition – either down stream or upstream are shared • Y coalition – if all functions shared 28-Mar-18KR MANGALAM UNIVERSITY 19
  • 20. STRATEGIC ALLIANCES KR MANGALAM UNIVERSITY 28-Mar-18 20
  • 21. COOPETITION • Coopetition is the simultaneous competition and cooperation between two or more rivals competing in global markets. It captures the duality of cooperation and competition between a given pair or among a group of rivals • Competition may occur at multi-points and via multi-units, while cooperation represents a joint effort for mutual gains • Under coopetition, the relationship between rivals is a simultaneous, inclusive interdependence • The interdependence entails competitive and collaborative activities undertaken in the pursuit of global reach, expansion, and profit KR MANGALAM UNIVERSITY 28-Mar-18 21
  • 22. COOPETITION • Three properties of coopetition include: • Cooperation and competition coexist between the same global rivals • Cooperation and competition exist during one period • Coopetition may occur at corporate-, division-, or subsidiary-levels, depending on a firm’s strategic intent and organizational needs KR MANGALAM UNIVERSITY 28-Mar-18 22
  • 23. COOPETITION – EXAMPLES KR MANGALAM UNIVERSITY 28-Mar-18 23 + + + + 4G Network roll out