Competitive and Cooperative Strategy

Abstract

Abstract This lead chapter defines competitive, cooperative, and coopetitive strategies, and provides an overview that complements the two following chapters which focus on gaining competitive advantage and creating value through alliances. This lead chapter suggests that although cooperation counters competition, in practice, firms simultaneously compete and cooperate in markets and value chain functions. The chapter reviews theories on competitive and cooperative strategies, such as market power, transaction cost economics, and resource-based theories, and highlights game theoretical, relational, and social perspectives. The chapter then considers the changing context of strategy, including the rise of emerging economies, political intervention, technological disruption, and growing social demands on businesses. The text points to new forms of cooperation and competition, including global value chains, cross-sector alliances, technology platforms, and ecosystems, with new models of public-private collaboration. This new business reality has important implications for the future focus of research on cooperation, competition, and coopetition.