Abstract

This chapter explores the relationship between business model design and coopetition-based strategies among competing firms. The reason for coopetition could be defensive or offensive depending on the relative threats and opportunities. Coopetition requires the ability for firms to design, implement, and manage new business models. This chapter provides an overview of case vignettes in the bond trading market, electronic book retailing, and flat-screen LCD television markets to illustrate the rationale for coopetition-based business model design. The chapter proposes a framework on how, when, and why business model innovation is required for coopetition-based strategies in order to contribute to competitive advantage.