Incumbents achieving coopetition with disruptively technological entrants: a case from Chinese animation industry

Abstract

ABSTRACT A disruptive technology threat replaces incumbents. While a prior disadvantage of incumbent competing against disruptive technological entrants lacks an effective incumbent’s competitive response. This research studied the case of a Chinese top animation firm, Comicfans Co., Ltd. This study aims to process a triangular qualitative research in the form of integrated qualitative research in terms of more comprehensive triangular formats. Furthermore, this study expands coopetition theory into entrant vs. incumbent under disruptive technology context and reveals how an incumbent-built competitive forbearance and formed coopetition with disruptive technological entrants by intra-industry integration (upstream and downstream) and cooperation (exploration and exploitation). When the disruptive entrants are in upstream substitution and show extension downstream, incumbent companies can adopt a strategy of diversified integration of downstream channels and cooperation with upstream entrants to increase the multi-point advantage and resource symbiosis in the downstream sectors against the entrants to obtain competitive priorities. When disruptive entrants are in downstream substitution and show an extension to upstream, incumbent companies can adopt a strategy of diversified integration of upstream product/business and exploitation cooperation with downstream entrants to improve the multi-point advantages and resource complementarity in the upstream sector against the entrants so as to obtain competitive priorities.