Coopetitive Business Model Methodology

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COOPETITIVE BUSINESS MODELS

Coopetitive business model methodology was developed as a framework for different industry participants to collaborate and integrate resources in order to generate new value propositions. Using design thinking principles and the business model canvas, this methodology will support organisations in creating an environment conducive to new and disruptive ideas that can gain potential competitive advantages while leveraging capabilities from co-opetitors (new actors in the supply chain, as well as, cross industrial collaboration).

COMPETITIVE BUSINESS MODEL METHODOLOGY

With the introduction of disruptive business models into traditional industries, emerging technologies and innovations are creating a new landscape of competition. As a result, organisations should be strategically prepared to respond to developing trends. A common technique for doing so entails shifting from separate product and service offerings to more complex value propositions that will allow firms to capitalise on market possibilities to maintain and grow their market position. However, high uncertainty for the final offering, products’ short life cycles, technology convergence and R&D spending intensity are only a few of the reasons why vertically-integrated resources and competencies are never enough for a standalone firm when new sectors emerge.

As a result, these product-service value propositions can only be realised when many actors collaborate to create and deliver value by combining their resources and competencies to overcome technological and commercial difficulties.

In response to that, coopetition emerges as a viable business option. Coopetition, defined as “a situation in which rival companies (two or more) simultaneously compete and cooperate with each other” (Bengtsson and Kock, 2003), provides the opportunity to form a strategic alliance that, based on trust and sharing knowledge, could still be beneficial even between traditional competitors.

The Coopetitive business model methodology was developed as a framework for different industry participants to collaborate and integrate resources in order to generate new value propositions. Using design thinking principles and the business model canvas, this methodology will support organisations in creating an environment conducive to new and disruptive ideas that can gain potential competitive advantages while leveraging capabilities from co-opetitors (new actors in the supply chain, as well as, cross-industrial collaboration).

The methodology allows for the identification of mutual opportunities for collaboration in order to create win-win situations that benefit not only the companies but also the emerging sectors as a whole.

Coopetitive business model framework

Step 1

Identifying potential
coopetitors

Step 2

Assessing all coopetitors’
current business model

Step 3

Choosing your
target audience

Step 4

Collaborating within a
design thinking session

New value propositions

Value proposition 1
Value proposition 2
Value proposition X
Step 5

Reporting and providing initial roadmap for implementation

The analysis can uncover:

  • Technological convergence with the potential to be market-leading.
  • Similarities in way of thinking around common concerns and challenges among coopetitors.
  • New ways of collaboration with existing or new partners.

The output of the analysis will help you to:

  • Identify suitable collaborative opportunities that otherwise would not be obtained by just one organisation.
  • Gain knowledge around requirements for new conceptual products-services and/or business models offerings.
  • Create a framework for future work and collaboration with other industrial players on strategic elements.

The Supply Chain Resilience Hub is part of WMG at the University of Warwick and supported by the WMG Centre High Value Manufacturing Catapult.

An academic department of the University of Warwick, WMG is a world leading research and education group.

WMG has internationally recognised facilities and expertise in supply chain operations and organisational transformation. Our supply chains research group applies customer responsive supply chain theory into practical solutions that generate both economic and societal value.

Collaborating with industrial partners, we seek to resolve complex business and organisational problems across agrochemicals, automotive, defence, consumer-packaged goods, retail and pharmaceuticals.