Competitive and Cooperative Dynamics

In order for a business to be successful

In order for a business to be successful, more so in a competitive environment, it has to consider more than what it has to offer. It takes an analysis to define the environment one operated under and therefore formulating the right strategy for the benefit of the organization. Masanell (2015) further address this subject issue by discussing the dynamics of competition and cooperation as applicable to business. The article proposes that companies have and constantly make the choice about its “positioning and business model” (Masanell, 2014).

Importance of relationships and interdependencies

According to the author, relationships can help a firm to create value and that is why it is important for organizations to either choose to be competitive or cooperative with other players in their respective market. The two differ based on the fact that market uncertainties do exist and therefore, the kind of interdependencies a firm builds and rely on can dramatically affect its outcomes as well as its market share and value. Therefore, Masanell (2014), discusses ways through which a firm can build on its understanding of the dynamic choices available for it to follow through with.

Strategic interaction and its impact

Of particular interest is how the author addresses the issue of strategic interaction to define it as a business model that analyzes the other players. Masanell’s arguments entail a comprehensive analysis of models and how they apply and affect an organizations performance as well as that of its players. This is in respect to the fact that the choices one business make will ultimately impact on other businesses in the same market. Therefore, Masanell identifies various strategies that are either competitive or cooperative leaving it for the targeted reader to synthesis which one is most applicable to their business or organization. There is also the breakdown of aspects such as value creation and intelligence as applied when choosing between the two forms of dynamics.

Key takeaways from the article

From this article, the three takeaway points that are important for individuals and or businesses to understand are the concepts of game theory, gathering intelligence and the types of strategic interactions. Game theory has to do more with recognizing the fact that various choices have definite consequences for every player in the field. Therefore, by understanding this, individuals and businesses will be in a position to identify choices, possible outcomes and payoffs as associated with different choices thus ultimately making the best choice.

For gathering intelligence, Masanell (2014) explains that there is history worth exploring on the various players, who are businesses, to better understand them as well as gain important clues on the environment for further considerations. The importance of this is to gain a holistic perspective thus further anticipating for competition or cooperation and effectively preparing for it (Masanell, 2014). Lastly, there is the need to consider the strategic interactions, which broadly are competition which shrinks any available share and cooperation between firms which increase share. For individuals and businesses to prosper, they have to ensure that the best strategy that will align with other aspects of the organization.

Conclusion

In conclusion, the arguments that Masanell makes in the article, Competitive and Cooperative dynamics are best designed to help individuals and businesses understand the environment they operate in. From this article, it is clear that no one business can survive on its own and therefore, there is the need to take into account what other players can offer just as it is necessary to weigh one’s input.

Reference

Masanell, R. (2015). “Competitive and Cooperative Dynamics.” Harvard Business School