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Working with rivals: the impact of competitor alliances on financial performance

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Organizational and marketing strategists have long espoused the idea that to achieve superior profitability, a firm must gain and sustain a marketplace advantage over its competitors. In contrast to the rivalry view of competition as a "win-lose" game, the authors suggest that firms can form alliances with rivals (which they term "competitor alliances," or CA for short) to accomplish both competitive and cooperative goals and boost profits in a "win-win" manner. The authors identify several benefits from engaging in CA activities. The central tenets of this article are as follows: CA activity that is either too low or too high harms a firm's financial performance, and the impact of CA on performance varies across different types of competitor-oriented mind-sets. Based on a combination of both survey and archival data across two independent studies, the results indicate that firms may financially benefit from forming alliances with their rivals. Thus, the results suggest that managers need to balance simultaneously both competition and cooperation to optimize potential risks and returns because both appear to have a "dark side." Finally, many managers subscribe to the common refrain that being "competitor oriented" means a zero-sum rivalry in which maximizing market share or winning a price war will naturally improve their firm's bottom line.Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Penerbit	American Marketing Association.,
Edisi	-
Subjek	Competition Profitability Alliances Market strategy studies
ISBN/ISSN	222437
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data