BU398 Chapter Notes - Chapter 5: Clorox, Coevolution, Walmart
Document Summary
A system formed by the interaction of a community of organizations and their environment, usually cutting across traditional industry lines. Interorganizational relationships are the relatively enduring resource transactions, flows, and linkages that occur among 2 or more organizations: the presumption is that the world is composed of distinct businesses that thrive on autonomy and compete for supremacy. A large percentage of new alliances in recent years have been between competitors. Traditional competition no longer exists because each organization both supports and depends on others for success and perhaps even survival. Most managers recognize that the competitive stakes are higher than ever in a world where market share can crumble overnight and no industry is immune from almost instance obsolescence. Companies need to coevolve with others in the ecosystem so that everyone gets strong: for example, wolves cull weaker caribou, which strengthens the herd. A strong herd means that wolves must become stronger themselves.
