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Winning Strategies for the 21st Century

Edited by Saïd Yami, Sandro Castaldo and Giovanni Battista Dagnino

As an original strategic management perspective, coopetition has hitherto been underexploited in analysing contemporary firm strategies and behaviours and, more generally, managerial practices and processes. This innovative book provides both theoretical insights and empirical evidence on coopetition.
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Chapter 9: Coopetition Within an Oligopoly: Impacts of a Disruptive Strategy

Pierre Roy and Saïd Yami


Pierre Roy and Saïd Yami INTRODUCTION The strategic literature identifies the oligopolistic market configuration as an appropriate context in which to question the dialectics between individual and collective fates characterizing firms (Astley, 1984). Indeed, the oligopolistic interdependence is binding on firms and creates collective interests exceeding those specific to each firm (Pennings, 1981). The emergence of the concept of coopetition deals precisely with this relational paradox (Brandenburger and Nalebuff, 1996). In this research, we investigate a firm’s deviance from a collective fate in an oligopoly and the competitive implications of such a move on the coopetitive relation between dominant firms. To be precise, we wonder about the impacts of the introduction of a disruptive strategy (Hamel and Prahalad, 1994) within an oligopoly. In this regard, we study the case of UGC’s unlimited access card launched in March 2000 in the French movie theater sector. This event characterizes a disruptive strategy individually carried out by one of the dominant firms and which goes against the collective interests of the oligopoly (composed of Gaumont, Pathé and UGC). In this chapter, we first present the theoretical background, mobilizing the concepts of collective strategy, coopetition and disruptive strategy. Then we explain the methodological aspects of our study and the empirical context. The third part is devoted to the treatment of the case from a longitudinal perspective. 1. 1.1 THEORETICAL BACKGROUND Oligopoly and Interdependence The starting point of our research is linked to the following statement: the contemporary economy privileges more and more the...

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