Enhancing competitiveness through MNC-local firms co-opetitive relationships

Abstract

Subject area The case study reflects issues and challenges in the fields of strategy, management, competitive intelligence and new organizational designs. Study level/applicability The case study is recommended for MBA and postgraduate courses in strategy, management, competitive intelligence and new organizational designs. The case can also be used in executive development programs focusing on business strategy and innovation. Case overview It is 2009. LK Company has newly been established as lighting products manufacturer. Based in Thailand, the firm commences its business operations with an aggressive pricing strategy (low-cost products). At the time of the establishment and launch of operation activities, the market leader [an international multinational company (MNC)] has above 35 per cent market share, leaving LK with an initial 2 per cent market share. While the share of LK grew from 2 to 10 per cent in the past five years, competition in the industry nevertheless remains harsh. Companies are confronted with pressures to invest in the development of new energy-saving lamps, and in this context, LK's company executive board needs to make a strategic decision on which way to follow to sustain the business: shall this be with or without foreign MNCs. Expected learning outcomes Students will be able to better understand; analyze and assess the importance of resource management in highly competitive environments, as well as the importance of designing alternative growth strategies by identifying and assessing changes in the market/environment. They are introduced to characteristics of co-opetition strategies, advantages and disadvantages of co-opetitive business structures and impact of the choice of business partners over time. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.