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There is a growing number of instances where competitors are actually collaborating. List some of the...

There is a growing number of instances where competitors are actually collaborating. List some of the benefits and some of the drawbacks associated with this. Provide an example of competitors who have actually collaborated.

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Answer #1

Benefits-

  • Wider geographical reach
  • Financial savings and better use of existing resources
  • Knowledge, good practice & information sharing
  • Sharing the risk in untested projects

Drawbacks

  • Loss of flexibility in working practices
  • Complexity in decision-making and loss of autonomy
  • Damage / dilution of brand and reputation

The General Motors Corporation entered into an agreement to produce a subcompact car in the United States jointly with the Toyota Motor Corporation of Japan.

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