Question

Do you suppose that offensive or defensive collaborations are more effective as tools to gain competitiveness? Do you think Berkshire Hathaway engages in either of these collaborations?

Answer 1

I suppose, both offensive and defensive collaborations are effective as tools to gain competitiveness depending upon the scenario in which such a collaboration is advantageous. While the Offensive collaborations work upon improving marketing conditions, Defensive work upon protecting the same, while both aim at gaining competitiveness thereby being effective tools.

I think Berkshire Hathaway engages in Defensive collaborations given the fact that there has been a recent healthcare alliance announces among Amazon, Berkshire Hathaway and JP Morgan Chase. This was rather a defensive collaboration with the fear that Amazon would otherwise enter into the Pharmacy field, obtaining the fruits of the Pharmacy Management field though as of now, Amazon had still not penetrate deep into the Pharmacy sector but its potential to do so, was itself a threat for Berkshire Hathaway and hence the collaboration.