Coopetition Yadong Luo 2005

“Competition has been shown to be useful up to a certain point and no further, but cooperation, which is the thing we must strive for today, begins where competition leaves off.” Franklin D. Roosevelt

Transnational firm Company strives simultaneously for high local responsiveness and global efficiency Best of both world: standardize where feasible, adapt where appropriate Unfortunately, this duality leads to an internal struggle Global strategy More likely in global industries Transnational strategy More likely in global industries Home replication strategy More likely in multidomestic industries Multidomestic strategy More likely in multidomestic industries Pressures for local responsiveness Pressures for global integration Weak Strong Weak Global strategy More likely in global industries Transnational strategy More likely in global industries Home replication strategy More likely in multidomestic industries Multidomestic strategy More likely in multidomestic industries Pressures for local responsiveness Pressures for global integration Weak Strong Weak Transnational strategy More likely in global industries Please note comments.

“Coopetition is a mindset, process, or phenomenon of combining cooperation and competition. It means cooperating to create a bigger business pie, while competing to divide it up.” Brandenburger & Nalebuff Please note comments.

Imagine a transnational franchising company in the restaurant industry… Please note comments.

Interaction between subunits Cooperation between subunits Technological Operational Organizational Financial Competition between subunits Parent resource and support System position Market expansion Please note comments.

Determinants Cooperation Strategic interdependence Subunit form Technological linkage Competition Local responsiveness Market overlap Capability retrogression Please note comments.

Typology Aggressive Demander - low cooperation - high competition Network Captain - high cooperation - high competition Silent Implementer - low cooperation - low competition Ardent Contributor - high cooperation - low competition Cooperation Competition Low High Low Please note comments.

Integrated model of inter-unit coopetition

Management tool PODIO Video / Podio introduction: An intranet that restores knowledge and increases coopetition through encapsulation system. Coordination from headquarter and by subunits themselves.

A Brainteaser to enhance competition suitable for your subunits type? to enhance cooperation suitable for your subunits type? How would you use Podio Let’s form 4 groups… Aggressive Demander - low cooperation - high competition Network Captain - high cooperation - high competition Silent Implementer - low cooperation - low competition Ardent Contributor - high cooperation - low competition Cooperation Competition Low High Low

A Brainteaser to enhance competition suitable for your subunits type? to enhance cooperation suitable for your subunits type? How would you use Podio Outcome: Aggressive Demander - Internal marketing - Display function among franchisees - Many “Top secret folders”, which can be only accessed by VIPs. Network Captain - Networking App to create solutions between subunits - App to share best practices among subunits - App, which recalls when tasks are finishes by first subunit Silent Implementer - Providing each other help and recommendations on certain issues - Sales figure trading - Competition channel to standardise process Ardent Contributor - Online work group - Knowledge/ resource sharing platform - Work groups comprising of members from different units. - Use Podio as a knowledge sharing platform - mutual platform that subunits can edit at the same time > sharing ideas, innovation - Organise case competitions for different departments - Display performance indexes for different subunits - Real time info on each subunit’s performance Cooperation Competition Low High Low

“Competition has been shown to be useful up to a certain point and no further, but cooperation, which is the thing we must strive for today, begins where competition leaves off.” Franklin D. Roosevelt