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Case study
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How LinkedIn and Facebook Can Cooperate in Mutually Beneficial Ways
While it may seem counterintuitive for rival entities to cooperate, it is evident that in the corporate world collaborating with a competitor can facilitate new structures of value creation and the development of better corporate practices (Association of Strategic Alliance Professionals [ASAP], 2013). One of how LinkedIn and Facebook can cooperate for mutual benefit is the joint development of new applications. It is inarguable cooperation between the LinkedIn and Facebook can provide an opportunity for both organizations to collaborate in the joint development of new features and applications. As such, both firms can deliver value in new ways at low costs and risks, in addition to utilizing the complementary capabilities of each other (Thompson, & Twait, 2011). Such complimentary capabilities include intangible assets like brand, reputation knowledge, and market expertise; as well as tangible resources market access and production capabilities.
Another way in which the organizations can cooperate and the collaborative advantage is through jointly selling of consumer behavior to marketers or any other interested parties. A strategic alliance between the organizations will help to combine and leverage the relative organization’s capabilities of data collection and assimilation, and business analytics (Thompson, Twait, & Fill, 2011). In turn, this will facilitate a wide range of collaboration in varying and complementary ways, especially in market research.

Equally important, both organizations can form a strategic alliance of cooperation to gain from collaborative advantages, through providing clients (customers) with special incentives to sign up and join both platforms (Hanson, 2015). Besides the benefits aforementioned, a strategic cooperative alliance also helps organizations with new distribution channels of services and products offered by the organizations (Rosabeth, 1994). As such, collaboration and cooperation between LinkedIn and Facebook, provides the opportunity for the two organizations to combine and utilize each other’s distribution capabilities. Grant (2010) state that, the coordinated access to the services offered by the cooperating organizations, helps the firms to attract new customers that the company could not have reached and served before through individual, organizational effort.
References
Association of Strategic alliance Professionals. (2013). The ASAP handbook of alliance
management. The Association of Strategic alliance Professionals, 33–34.
Hanson, C. (2015). Orchestrating partnerships across enterprises. Strategic Alliance Magazine, 16–20.
Grant, R. M. (2010). Contemporary strategy analysis. John Wiley & Sons, 89-98.
Rosabeth, M. K. (1994). Collaborative advantage: The art of alliances. Harvard Business
Review, 72(4), 96.
Thompson, D. S., & Twait, S. (2011). High risk to high reward: How to dig in, solve problems, and create a valued alliance management function. Strategic Alliance Magazine, 37–41.
Thompson, D. S., Twait, S., & Fill, K. (2011). Measuring alliance management: Quantify your
value by showing how you mitigate risk and solve problems. Strategic Alliance, 22–25.