Alumni

SMPIG--Frenemies aka Collaborative Competition—How the Best Make It Work

Chicago Booth Alumni Club of Chicago

July 18, 2014: 7:30 AM - 8:45 AM

From Pharma to Tech to manufacturing, competition is neither simple nor regulatory permissible for everyone. We question for whom and when does a competition strategy make sense?

Where

Sopprafina Market Cafe
222 W Adams St,
Chicago, Illinois

Event Details

Typically, firms who effectively manage their value chain squeeze marginal cost to increase marginal profit. In Henry Ford's day, he brought all the means of production under one roof and managed his production volume relative to demand. The relative efficiency gains and impact on profitability of balancing quality and production costs appears to be cyclical. It also demands greater diversification and cross-leveraging of resources. Firms that continue to operate lean succeed by coordinating and cooperating with competitors to create additional value from underutilized assets.

Elon Musk made headlines with his bold collaborative move that gives his competitors rights to some of Tesla's patents. He understands how his growth depends on the success and growth of his competitors. This is not the traditional management view of limited priorities and cross-wired incentives that meet quarterly earnings but create inefficiencies long term, and impede innovation.

Enough illustration—From Pharma to Tech to manufacturing, coopetition is neither simple or regulatory permissible for everyone. In July we question for whom and when does a coopetition strategy make sense?

Seating is limited so please be sure to register and read the articles below and come prepared with your questions.

1.The Economist--special report
http://ilo.uniroma3.it/NEWSILO/vdoc/Approfondimenti/eiu_BT_collaboration_wp.pdf

2. The pharma story
http://fortune.com/2014/02/11/can-drugmakers-find-profit-in-collaboration/

3. The Apple Samsung update
http://www.forbes.com/sites/haydnshaughnessy/2013/11/19/apple-and-samsung-collaborate-to-dominate-in-mobile/

Optional, for the more curious, the deeper dive background illustration of coopetition—very readable but lengthy backstory to Apple Google Samsung
http://www.diva-portal.org/smash/get/diva2:706199/FULLTEXT01.pdf

Cost

No Charge

Registration

Register Online

Deadline: 7/17/2014

Questions

Rachel Kaberon 

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