Strategic Networks

PrefacePart One Competition and Cooperation 1 A New Way to Compete Current Competitive Requirements Organization as a Way to Meet Strategic Demands The Two Basic Ways to Organize Economic Activity: Vertical Integration and Subcontracting The Emerging Way: Strategic Networks Description of this Book 2 Understanding the Playing Field: The Business System The Business System The Intrinsic Profitability of the Different Activities Organizing the SystemPart Two The Three Ways to Organize a Business System 3 The Old System: Organization Through Vertical Integration Why do Companies Integrate? A Weak Argument Other Arguments for Vertical Integration Disadvantages of Vertical Integration Guidelines for Decision-Making on Vertical Integration Why the Problems are Outweighing the Advantages More and More Conclusion 4 The Fashionable Mistake: Oversubcontracting Advantages of Subcontracting When Subcontracting Goes Wrong Conclusions 5 The Emerging Solution: The Strategic Network Benetton Spa A Network Organization Manufacturing Activities Selling Activities The Essence of the System Subcontracting in the Automobile Industry Revisited: The Japanese WayPart Three How to Set Up and Manage a Strategic Network 6 The Essence of a Strategic Network Competition and Cooperation When is Cooperation the Most Appropriate Way? How to Reduce Transaction Costs Generating Trust The Network's Internal Consistency When is a Strategic Network the Appropriate Response? Setting Up and Managing in a Strategic Network Conclusions 7 International Considerations Cost of the Activities and Costs of Coordination in International Business Vertical Integration and Subcontracting Across Borders International Strategy: Coordinating Efficiently Across Borders Conclusions 8 General ConclusionsBibliographyIndex