Co-opetition scope index: operationalization and validation

Abstract

Co-opetition is a business strategy that goes beyond the old rules of competition and cooperation to combine the advantages of both. Co-opetition is a pioneering, high profit means of leveraging business relationships [1]. In our previous work[2], we looked at co-opetition as a strategic alternative and provided examplesand conditions of when co-opetition is feasible and sustainable. In this report we look at modeling, operationalization and validation of coopetition scope index. We first start with modeling the scope index in terms ofeconomies of scale and scale in the value chain from a pair-wise firm level perspective. We then provide a framework to determine the co-opetition scope index under this scenario. We then validate this framework using two examples:Tower sharing agreements between Indian cellular operators and the coopetition between Starbucks and PepsiCo. We finally link this inter-firm CSI to industry attractiveness and the Porter s framework discussed in [2].