Value-System & Co-opetition

Question 1

definition of co-opetition strategy

Answer 1

Gnyawali et al 2008

the way firms simultaneously compete and cooperate to create and pursue current and future advantages

Question 2

sleeping with the enemy

Answer 2

Coy (2006) - learning to work with competitors is important

Question 3

sleeping with the enemy example

Answer 3

MedUnite was founded by 7 competing US healthcare insurers to develop efficient internet-bass system to reduce costs

Question 4

strategic alliances stats

Answer 4

harbison & Pekar 1998 found that over 50% of strategic alliances are between firms in the same industry (competitors)

Question 5

Samsung & Sony example

Answer 5

this was a joint venture into TV using LCD technology to try to gain market share - this ended up happening for both of them and they both own more than 50% of the JV

samsung brings the tech strength but in a smaller scale than TVs & Sony brings the TV strength

Challenges:
Trust - samsung engineers went to sony’s HQ to see how it all worked and sony acknowledged that they could use this tech to compete against them but didn’t want to close the information flow because this would have adverse consequences for them as well
Culture - Japan and Korea have national pride about being leaders in tech .. there were political and cultural forces to overcome

Question 6

break off from tradition

Answer 6

Brandenburger & Nalebuff 1996

traditional strategy is viewed through the military sense “business is was” but neglects cooperation

Question 7

value net

Answer 7

add a 6th force to porter’s 5: the complements

From top to right is customer, complementary, suppliers, substitutes, and the company in the middle

Question 8

PARTS

Answer 8

Brandenburger & Nalebuff 1996
Players, added value, rules, tactics, scope

allows strategists to view the game and figure out if value could be added

Question 9

Shadow of the Future

Answer 9

Axelrod’s 1984 discussion about how this isn’t a single shot game in game theory .. players might meet again in the future and need to factor this in

Question 10

Fast paced industries

Answer 10

in fast paced industries with uncertain tech features and potential for disruption, the incentive to cooperate may be greater - silicon valley (Gnyawali et al 2008)

Question 11

empirical study by Quintana-Garcia 2004

Answer 11

showed that collaboration with direct competitors is important not only to acquire new technology knowledge and skills but also to access other capabilities based on exploiting existing ones

Question 12

reasons for cooperation in high tech

Answer 12

(Gnyawali & Park 2007)
Short product life cycle: speed to market more necessary and need to reduce R&D period
Tech convergence: devices (phones) able to handle an array of media
High R&D Costs: high and pharma and tech but can reduce by cooperating

Question 13

public policy traps

Answer 13

document the collaboration to show it does not entail anticompetitive motives and actions

Question 14

Drivers of Coopetition

Answer 14

relationship between value creation and value appropriation

Question 15

how to ease the process of coopetition

Answer 15

if common benefits take place in areas different from where the collaborating firms capture benefits, this separates value creation and value appropriation

In particular if it happens in value chain stage close to customer: product integration and marketing

Question 16

outcomes of coopeition

Answer 16

concern about antitrust, focus on psychological aspect for firms, make sure the right information is release

Question 17

using the value net

Answer 17

if your actions affect their profits or vice versa, there may be an opportunity to create value by cooperating

Question 18

challenge for managers

Answer 18

Coy 2006

it can be difficult for execs to convince organizations to share its secrets and information with the enemy