article thumbnail

Why Your Company Should Partner with Rivals

Harvard Business Review

The thinking behind this axiom began to be challenged in the mid-1990s, with the publication of smart, highly-regarded competitive strategy books, such as Co-opetition by Barry Nalebuff and Adam Brandenburger. Stakeholders are scrutinizing the ways companies deliver value to consumers. The other 70 percent winds up in landfills.

article thumbnail

Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business Review

In many industries, the capital required to build an asset of minimum efficient scale is growing. Two companies transfer selected similar assets into a joint venture in order to support the orderly management of capacity in their industry and reduce the risk of prices spiraling downward. This all presents CEOs with a tough dilemma.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Old Management Systems Stifle New Business Models

Harvard Business Review

Unlike their industrial peers, managers of asset-light businesses focus little on the balance sheet. Even today, with more than $200B in market capitalization largely derived from that same data, investors struggle to value the company’s information. Where we land is firmly in the face of a management paradox.

article thumbnail

Use Co-opetition to Build New Lines of Revenue

Harvard Business Review

The way forward is co-opetition, in which entities in the same industries act with what everyone recognizes as partial congruence of interests. Nalebuff have written in their book Co-Opetition , businesses that form co-opetitions become more competitive by cooperating. Brandbenburger and Barry J.