Dealing with the downturn
Make love—and war
Aug 7th 2008 SAN FRANCISCOFrom The Economist print edition
Tough times are producing some surprising business bedfellows
COMPETITORS often find it hard to be civil to one another in public. But few rivalries have been as nasty as that between two New York newspapers, the New York Post and the Daily News. The “Daily Snooze”, as the Post dubs its rival, takes great pleasure in rubbishing its arch-enemy, and vice versa. Scurrilous gossip about the Post’s owner, Rupert Murdoch, is avidly reported by the Daily News; its proprietor, Mortimer Zuckerman, has been the target of less than flattering coverage in the Post. And the two titles like to bicker over which has the bigger circulation.
continued: http://www.economist.com/business/displaystory.cfm?story_id=11885356
Wimbledon Wisdom
-
I recently ran across a graduation speech by the tennis great Roger
Federer. I especially appreciated this passage:
In the 1,526 singles matches I played...
1 day ago
.JPG)
.jpg)
1 comment:
One thing that can be enjoyed about tough economic times is the zest for innovation and efficiency.
However, I wonder what “co-opetition” produces in the long term (i.e. longer than the tough economic times)? My guess, is that the efficiencies that are gained by co-opetition disappear as times become more comfortable, this being because more profit is to be made by going back to the companies’ pre-existing structures?
I struggle for examples, but the one I can think of involves airlines. Airlines merge in hard times, to stay alive. Creating economies of scale and feeding together off the tightened profit margin. In good times, that merged profit margin grows, but can actually be made bigger in net, if the companies separate and diversify, creating a niche allowing them to charge higher prices???
Ok-- I don't even follow my own logic, but why is it then, that only in hard economic times these companies participate in "co-opetition"? I get the pressures leading them there are greater. But the pressure to make a greater return always exists, even in good times.
Post a Comment