Assignment question: In the link provided below you will see two fierce competit

Question

Assignment question: In the link provided below you will see two fierce competitors working side by side to come up with a new product. Using the internet, write a one and a half page paper on two competitors working together to offer a product or service to the public. Ensure that you discuss the pros and cons of such a collaboration and give your take as to whether or not you believe that companies should follow such examples. http://www.nytimes.com/2011/08/23/business/ford-and-toyota-to-work-together-on-hybridtrucks.html?_r=0

organizational theory

Explanation / Answer

Recently Ford Motor Company and Toyota Motor Company has announced that they will jointly develop a gas-electric hybrid fuel system for pickup trucks and sport utility vehicles which is expected to keep larger models affordable as the automakers work to meet stricter fuel-economy standards.

The Ford makes the top-selling truck in the United States, the F-150, and Toyota is the leading producer of hybrid vehicles, till date which had sold more than 3.3 million after introducing the popular Prius car in 1997. A hybrid truck is a new concept for both of them and other automakers also do not have significant success in making a hybrid truck so far.

What we understand is the reason of such collaboration is new fuel-economy standards, announced by the Environmental Protection Agency, that would require automakers to build more fuel-efficient vehicles in the coming years and that have forced them to explore more advanced technology. This type of collaboration can helps Ford Motor and Toyota Motor to reduce the costs and development time of this type of work and keeps hybrid trucks economical and better performer. Although both of companies working in automobile sectors but they have different sets of expertise and by coming together on such type of joint project ultimately going to help the consumers at large.

As per basic law of economics, the competition is good for the consumers but some time collaboration on some unique concept or technology brings better result than mere competition. The motive behind that collaboration is more important either it is intended to benefit the society at large or it is just for survival or other ill intention is there. In the above case we can believe that as the both the companies are doing well in their core area of business so this is not for survival and the world is more transparent today as we are living in the age of information so the companies with such repute will not plan any collaboration just to reduce the competition or create a monopolistic market for some product. The automobile industry has a large number of players throughout world so the collaboration of two companies will not serve the purpose.    

An effort to make an innovative fuel efficient hybrid truck must be appreciated and both the companies deserve more appreciation because they have moved ahead of competition for a much needed project where the joint effort of both the companies can bring an exceptional result. This concept is not a new concept, earlier also many competitor companies has collaborated with each other on advanced technology and brought an unique result or product which otherwise was not possible. There is no harm if other companies can also follow such examples provided that they have some unique strength and need some more knowledge and different vision from their competitor company to develop something which can benefit both of them and consumer at large. The new business world has to be more flexible and full of possibilities because their consumers are more demanding and changing their mind very fast.

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