Question

Which of the following statements best describes the core difference between competitive and cooperative business strategies?

A.

A cooperative business strategy has the ability to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale services.

B.

Competitive strategy is intentional and long-term; cooperative strategy is unintentional and more short-term.

C.

Competitive strategy is developed as a part of the strategic plan; cooperative strategies are opportunistic in nature.

D.

In a competitive strategy, each entity works in its own interest; cooperative strategies can also be competitive and involve two or more entities working together to compete against others.

E.

Cooperative strategy is a temporary market opportunity; competitive strategies last over the length of the business' life.

Answer 1

The statement which best describes the core difference between competitive and cooperative strategy is:

"In a competitive strategy, each entity works in its own interest; cooperative strategies can also be competitive and involve two or more entities working together to compete against others."

Explanation: A cooperative strategy is a practise by which a firm tries to realize its objectives through cooperation with other firms, in strategic alliances and partnerships (such as joint ventures), rather than through competition with them.

The cooperative strategies are in trend in today’s business environment, and it offers many advantages for the companies practicing it such as knowhow, resources, competencies etc.

A company practicing competitive strategy looks for its own interest the market and tries to compete with all other companies in the same industry.