Cooperative Strategy

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International cooperative strategy is a strategy in which companies with headquarters in various countries combine some their efforts, knowledge and skills to come up with an advantage competitively. Nestle Company is a worldwide organization, and by knowing this, it is not astonishing that the international strategy is what has been playing a major role in their competitive focus. Nestle focuses on equilibrating the sales between low risk and low growth states of economically developed nation and significantly increasing growth markets in Africa and Latin America. Despite that, there are challenges regarding cost, and trade barriers, Nestle have known profitability outcomes in these high-risk countries, but have vowed not to take the underlying risks in an expense of expanding its territories. In the 1990s, Nestle employed a strategy of partnering with coca cola and it enjoyed coca cola’s international wide bottling system. This greatly helped Nestle to beat other competitors in the world market.

Network cooperative strategy is a plan where multiple companies work in unison to meet the common objectives through multiple partnerships. These strategies are formulated to create more business value for all partnering companies as well as consumers and other stakeholders. Network cooperative strategy relies on stable alliance network that facilitates effective social relationship and interaction among the partnering firms. In addition, this strategy is most suitable for companies that are located in close proximity. Nestle company has collaborated with other firms to create innovative products and enhanced services. One of the challenges that Nestle have faced is the lack of amenable contacts for the firms they have collaborated internationally. This challenge has been solved by the company through updating the contacts of the stakeholders for effective communication of information. Nestle has utilized this strategy effectively in creating innovative products and in the provision of other useful services. For proper network cooperative strategy, Nestle has also exhibited good social skills, and a high degree of interaction between the companies, to form an effective partnership.