skip to content

Cambridge Service Alliance

At the forefront of service transformation in the digital era
 
July Paper on 'Coopetition and Business Models' by Chander Velu

July Paper on 'Coopetition and Business Models' by Chander Velu

Studies have shown that firms are increasingly cooperating and competing at the same time in order to create competitive advantage and, hence, deliver superior returns. Shorter product lifecycle, convergence of multiple technologies and increasing costs of conducting R&D require firms to share resources with their competitors in order to improve the delivery of existing customer value proposition or develop new propositions. Resources needed to compete effectively often do not reside within a single firm and, hence, firms in the same competitive set often cooperate in order to share such resources and then compete to divide the jointly created value. Such simultaneous collaborative and competitive activities have been termed coopetition. Business models are a key concept in providing an understanding of how firms can affect the mechanism of value creation and capture within a coopetition setting. This paper explores the relationship between business model design and coopetition-based strategies among competing firms. The reason for coopetition could be defensive or offensive depending on the relative threats and opportunities. Coopetition requires the ability of firms to design, implement and manage new business models. This paper provides an overview of case vignettes in the bond trading market, electronic book retailing and flat-screen LCD television markets to illustrate the rationale for coopetition-based business model design. The paper proposes a framework on how, when and why business model innovation is required for coopetition-based strategies in order to contribute to competitive advantage.

 [paper]

Cambridge Service Alliance

Welcome to the Cambridge Service Alliance…

  • A unique global alliance between the University of Cambridge and some of the world’s leading businesses.

  • Help organisations to address the challenges they will face in the next three to five years, through rigorous research, practical tools, insights and education programmes.

  • Learn how other innovative organisations are developing new services through our events

  • Since its inception in 2010 industrial partners have included BAE Systems, Caterpillar, GEA, IBM, Pearson, Zoetis, CEMEX, HCLTech and Bouygues


CSA News

Lastest News.....