At the end of October 2003, Sony chairman and CEO Nobuyuki Inoue announced a new restructuring plan, in addition to layoffs, he will establish a joint venture with Samsung to produce LCD monitors; Earlier, at the end of August, Philips CEO corzley also announced that one of the pillars of the company's reorganization is to strengthen cooperation with competitors such as Motorola; Further on, strategic alliances have taken place between Sanyo and sharp, Hitachi and Siemens, Samsung and LG, Sony and Ericsson, Toshiba and Sanyo, LG and Philips, Kodak and lucky, American Airlines and Lufthansa. Unlike mergers and acquisitions that annex the other party, in the above strategic alliance, both parties still maintain the independence of property rights
70% cooperation is the strategic cooperation between rivals
enterprises, especially the cooperation mode with rivals has accelerated recently. "In recent years, more than 70% of the cooperation has been horizontal, that is, between direct competitors," said Dr. Park Shenghu, Professor of strategy at China Europe International Business School (CEIBS) and professor of British American Tobacco donation
Park Shenghu believes that the increase in cooperation with competitors is not an accidental phenomenon. First of all, many companies tend to cooperate with local rivals when entering countries and regions they are not familiar with, and many Sino foreign joint ventures are such products; Secondly, the market is more and more differentiated, and the competition is more and more fierce. Enterprises can better meet the diversified needs of customers by cooperating with competitors with other advantages; Third, the development and diffusion of technology are faster and faster, the product life cycle is shortened, and the uncertainty of R & D investment and future profits can be reduced by cooperating with rivals as shown in the figure; Fourth, the thinking of senior management of enterprises has changed. They no longer think that the larger the enterprise is, the better, but the more flexible it is. They can have new resources without expanding the scale of cooperation with rivals
there are many forms of cooperation with competitors, some of which are very formal. Special cooperation institutions are established between the two, while some are just temporary cooperation agreements signed by both parties. According to whether there is equity in the process of cooperation, it can also be divided into two kinds. One is equity cooperation, such as Sony Ericsson mobile communication company established by Ericsson and Sony; The other is non equityalliance, such as the crolles2 alliance formed by Philips, Motorola and Italian French semiconductor to carry out research in the field of microelectronics
among them, the development goal of Qinba Mountain Industrial Park is to closely combine industrial development with targeted poverty alleviation. Compared with the expansion of cooperation with competitors, another way to obtain competitors' resources, mergers and acquisitions, has become bleak in the international market in recent years. Since 2003, there have been few large-scale mergers and acquisitions. "Mergers and acquisitions declined sharply after peaking from 1999 to 2000," said Dr. Park Shenghu, "This is because the driving force of M & A intermediary financial institutions has weakened; and the stock market is no longer as high as it was in 2000, so managers have a lot of cash to buy madly; in addition, mergers and acquisitions have made the scale of enterprises expand sharply, and they cannot flexibly adapt to the rapid changes in the market. The CEO is also worried about the continuous problems of large-scale mergers and acquisitions."
learning to cooperate with rivals is formed by a sudden fracture
but at present, the cooperation situation between rivals in Chinese enterprises is just the opposite to that in the international market. With the promotion and support of the government, in order to create a large economy that can develop across regions and compete with foreign enterprises, the momentum of mergers and acquisitions among Chinese enterprises is still very strong, and there are only a few cooperation, some of which are fierce competition between them
"in fact, there are no two exactly the same competitors. Every enterprise has its own strengths in one aspect." Microsoft bcentral enterprise strategy columnist Jeff. Jeffwuorio said: cooperating with rivals can obtain resources that the other party has but does not have, and avoid repeated investment, which is particularly important in the current market tightening situation. TCL is now planning to expand its cooperation with Philips and other international electronic companies, hoping to use each other's global sales network to enter the international market
in addition, cooperation with competitors can prevent potential risks in the future. The first industrial civil war lubrication in the aviation industry is 10 points important for concrete special experimental machine equipment. Star Alliance, a cooperative organization, was established by several second-class airlines to cope with the competition of first-class airlines. In this organization, the intention to protect their future survival security is stronger than that of obtaining benefits from each other. Sony and Samsung formed a LCD joint venture to compete with the world's largest LCD manufacturer established by LG and Philips. Otherwise, Sony will lag behind sharp, Panasonic and other major competitors in the LCD market
"this can be illustrated by the counterexample of the defeat of the six kingdoms by the state of Qin at the end of the Warring States period." Park Shenghu said, "although Zhao, Han, Wei, Yan, Qi and Chu are rivals, if they can fight Qin together, maybe China's history will be rewritten." He believes that Chinese enterprises should learn from it and learn to cooperate with their rivals. "Because this is particularly necessary in China. First of all, Chinese enterprises are not mature and lack internal resources, which need to be supplemented by the outside; second, China has a large number of enterprises in an industry, which are weak, and can only be strong together."
four principles of cooperation with opponents
but the opponent is an opponent after all, and a little carelessness will lead wolves into the house. "Both sides want to obtain the greatest benefits from their opponents at the least cost, and some of their achievements are completely based on hurting the interests of their partners." Urio said, "such as robbing each other's customers and stealing each other's core technology." In addition, the success rate of competitor cooperation is very low, and it is estimated that two of the three alliances will fail
considering the above factors, park Shenghu suggested that when establishing cooperative relations with rivals, enterprises should start from the following four steps: first, judge whether it is necessary to cooperate with rivals according to the situation, whether there are some resources they need, and the cost of their own investment is too high; If there are such resources, should we choose mergers and acquisitions or cooperation; There are also trade-offs