Cooperative Strategy

Published by MBA Skool Team, Last Updated: January 22, 2018

What is Cooperative Strategy?

Cooperative Strategy in marketing is adopted by firms who wish to realize their objectives in cooperation with other firms through strategic alliances and partnerships rather than by competing with them. Cooperative strategies benefit companies lacking in certain resources or competencies and provide opportunities for mutual learning and easier access to new markets.

Benefits of Cooperative Marketing:

  • Economies of Scale – Placing a bulk order of supplies for a group of firms is cheaper than placing individual supply orders
  • Bargaining Power – Cooperative marketing can ensure more bargaining power through bulk purchasing agreements with retailers
  • Continuous flow of Products - A group of firms engaged in cooperative marketing can ensure a continuous flow of a large amount of products to a retailer
  • Preserving Markets – Businesses prefer cutting costs by procuring all their products or services from a single outlet
  • Access to expertise – For a cooperative group of firms access to professional expertise becomes cheaper
  • Increasing the Financial Income – This can come by tapping new markets and reducing the cost of supplies through bulk purchasing

For example, a group of orchard owners can form a cooperative marketing group and hire a professional marketing manager to promote their sales.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

Search & Explore : Business Concepts

Share this Page on:
Facebook ShareTweetShare on Linkedin