Case Study Description of Bargaining Strategies: Collaborative vs. Competitive Approaches
Note describes aspects of bargaining situations that point toward either collaborative or distributive bargaining strategies. Focuses on the nature of the issues, the relationship between the negotiators, and broader contextual factors, and how these variables influence the negotiation climate. Also describes tactics for bargaining effectively in mixed situations that call for both kinds of strategies.
Swot Analysis of "Bargaining Strategies: Collaborative vs. Competitive Approaches" written by James P. Ware includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bargaining Collaborative facing as an external strategic factors. Some of the topics covered in Bargaining Strategies: Collaborative vs. Competitive Approaches case study are - Strategic Management Strategies, Decision making, Labor, Negotiations, Organizational culture and Organizational Development.
Some of the macro environment factors that can be used to understand the Bargaining Strategies: Collaborative vs. Competitive Approaches casestudy better are - – increasing transportation and logistics costs, increasing household debt because of falling income levels, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing commodity prices,
increasing inequality as vast percentage of new income is going to the top 1%, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Bargaining Strategies: Collaborative vs. Competitive Approaches
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Bargaining Strategies: Collaborative vs. Competitive Approaches case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bargaining Collaborative, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bargaining Collaborative operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Bargaining Strategies: Collaborative vs. Competitive Approaches can be done for the following purposes –
1. Strategic planning using facts provided in Bargaining Strategies: Collaborative vs. Competitive Approaches case study
2. Improving business portfolio management of Bargaining Collaborative
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bargaining Collaborative
Strengths Bargaining Strategies: Collaborative vs. Competitive Approaches | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bargaining Collaborative in Bargaining Strategies: Collaborative vs. Competitive Approaches Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Bargaining Collaborative is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Bargaining Collaborative in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Bargaining Collaborative is one of the leading recruiters in the industry. Managers in the Bargaining Strategies: Collaborative vs. Competitive Approaches are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Bargaining Collaborative is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the Bargaining Collaborative are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Analytics focus
– Bargaining Collaborative is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by James P. Ware can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Bargaining Collaborative has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bargaining Collaborative has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Bargaining Collaborative is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Bargaining Collaborative is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Bargaining Strategies: Collaborative vs. Competitive Approaches Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Bargaining Collaborative has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bargaining Collaborative to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Bargaining Collaborative digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bargaining Collaborative has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Highly skilled collaborators
– Bargaining Collaborative has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Bargaining Strategies: Collaborative vs. Competitive Approaches HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Bargaining Collaborative has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Bargaining Strategies: Collaborative vs. Competitive Approaches Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Innovation driven organization
– Bargaining Collaborative is one of the most innovative firm in sector. Manager in Bargaining Strategies: Collaborative vs. Competitive Approaches Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Bargaining Strategies: Collaborative vs. Competitive Approaches | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Bargaining Strategies: Collaborative vs. Competitive Approaches are -
Workers concerns about automation
– As automation is fast increasing in the segment, Bargaining Collaborative needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study Bargaining Strategies: Collaborative vs. Competitive Approaches has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Bargaining Collaborative 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Bargaining Strategies: Collaborative vs. Competitive Approaches that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Bargaining Strategies: Collaborative vs. Competitive Approaches can leverage the sales team experience to cultivate customer relationships as Bargaining Collaborative is planning to shift buying processes online.
High cash cycle compare to competitors
Bargaining Collaborative has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Bargaining Collaborative has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Bargaining Strategies: Collaborative vs. Competitive Approaches should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Bargaining Collaborative, firm in the HBR case study Bargaining Strategies: Collaborative vs. Competitive Approaches needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Bargaining Collaborative has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners
– Because of the regulatory requirements, James P. Ware suggests that, Bargaining Collaborative is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Increasing silos among functional specialists
– The organizational structure of Bargaining Collaborative is dominated by functional specialists. It is not different from other players in the Organizational Development segment. Bargaining Collaborative needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bargaining Collaborative to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Bargaining Collaborative has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Bargaining Collaborative has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Bargaining Strategies: Collaborative vs. Competitive Approaches | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Bargaining Strategies: Collaborative vs. Competitive Approaches are -
Loyalty marketing
– Bargaining Collaborative has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Bargaining Collaborative can develop new processes and procedures in Organizational Development industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Bargaining Collaborative can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Bargaining Collaborative to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Bargaining Collaborative to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Bargaining Collaborative to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bargaining Collaborative can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Buying journey improvements
– Bargaining Collaborative can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Bargaining Strategies: Collaborative vs. Competitive Approaches suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Manufacturing automation
– Bargaining Collaborative can use the latest technology developments to improve its manufacturing and designing process in Organizational Development segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Bargaining Collaborative is facing challenges because of the dominance of functional experts in the organization. Bargaining Strategies: Collaborative vs. Competitive Approaches case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Organizational Development industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Bargaining Collaborative can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Bargaining Collaborative can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Bargaining Collaborative can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Bargaining Collaborative to increase its market reach. Bargaining Collaborative will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bargaining Collaborative in the consumer business. Now Bargaining Collaborative can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Bargaining Strategies: Collaborative vs. Competitive Approaches External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Bargaining Strategies: Collaborative vs. Competitive Approaches are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Bargaining Collaborative in the Organizational Development industry. The Organizational Development industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Bargaining Strategies: Collaborative vs. Competitive Approaches, Bargaining Collaborative may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Bargaining Collaborative in the Organizational Development sector and impact the bottomline of the organization.
Consumer confidence and its impact on Bargaining Collaborative demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Bargaining Collaborative is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bargaining Collaborative can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Bargaining Collaborative with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Bargaining Collaborative needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Bargaining Collaborative can take advantage of this fund but it will also bring new competitors in the Organizational Development industry.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Stagnating economy with rate increase
– Bargaining Collaborative can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Bargaining Collaborative
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Bargaining Collaborative.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Bargaining Collaborative needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Bargaining Strategies: Collaborative vs. Competitive Approaches Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Bargaining Strategies: Collaborative vs. Competitive Approaches needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Bargaining Strategies: Collaborative vs. Competitive Approaches is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Bargaining Strategies: Collaborative vs. Competitive Approaches is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Bargaining Strategies: Collaborative vs. Competitive Approaches is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Bargaining Collaborative needs to make to build a sustainable competitive advantage.