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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 tu…