Collaborative Advantage: Winning Through Extended Enterprise Supplier Networks

Hardcover | September 15, 2000

byJeffrey H. Dyer

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Why has Chrysler been twice as profitable as GM and Ford during the 1990s even though it is a much smaller company with plants that are less efficient than Ford's? Why does Toyota continue to have substantial productivity and quality advantages long after knowledge of the Toyota ProductionSystem has diffused to competitors? The answer, according to Jeff Dyer, is that Toyota and Chrysler have been the first in their industry to recognize that the fundamental unit of competition has changed--from the individual firm to the extended enterprise. In this book Dyer demonstrates the power of collaborative advantage, arguing that, in the future, competitive advantage will increasingly be created by teams of companies, rather than by the single firm. Managers who do not recognize this development--regardless of their industry--are indanger of adopting the wrong strategies for their firms. Dyer draws on eight years of study of the automotive industry, including a wealth of data from interviews with over 200 executives and surveys of over 500 suppliers, as he offers detailed case studies of Toyota and Chrysler to show managershow to create collaborative advantage with their supplier networks. Dyer demonstrates how to build trust in the extended enterprise, how to exploit and manage knowledge (describing how Toyota manages knowledge across organizational boundaries), and how to create advantages through dedicated assetinvestments. In turn, these processes generate stunning performance advantages and an identity for the extended enterprise. To be successful in future years, executives will have to convert their corporations into fully integrated, extended enterprises. In Collaborative Advantage, Jeff Dyer shows them how.

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From the Publisher

Why has Chrysler been twice as profitable as GM and Ford during the 1990s even though it is a much smaller company with plants that are less efficient than Ford's? Why does Toyota continue to have substantial productivity and quality advantages long after knowledge of the Toyota ProductionSystem has diffused to competitors? The answe...

Jeffrey H. Dyer holds the Donald Staheli Chair in International Strategy at the Marriott School, Brigham Young University. Before joining the faculty at BYU, he was a professor at the Wharton School, University of Pennsylvania. As a private, and former Bain and Company, consultant, he worked with companies such as Motorola, Ford, Baxt...
Format:HardcoverDimensions:224 pages, 9.02 × 5.98 × 0.91 inPublished:September 15, 2000Publisher:Oxford University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0195130685

ISBN - 13:9780195130683

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"Using Toyota and pre-merger Chrysler as his benchmarks, b-school prof Dyer advises companies to band together with their suppliers to form an extended value chain, a kind of keiretsu American-style. His methodology uses dedicated assets, knowledge sharing, and trust to lower costs andincrease profits for everyone."--Business Reader Review