Co-opetition Strategic Decision-making Mechanism Of Enterprises

With the sweeping of economic globalization and the deepening of themarket-oriented reform in our country since the1980s, market competition isincreasingly fierce. Enterprises have to face fierce competition from domestic andforeign ones. A single dimension of cooperation or competitive strategy has beenunable to meet subsistence needs of enterprises. The appearance and development ofco-opetition strategy provides a new perspective for the enterprise. Current studiesabout the enterprise’s co-opetitive choice only focus on theoretical and qualitativeanalysis while lacking of systemic empirical study and case study. This isdisadvantageous for the further development of the co-opetition theories.This paper systemic reviews the research on competition, cooperation,participating subjects of co-opetition, prepositive variables of co-opetition, types ofco-opetition, postpositive variables of co-opetition and interaction and evolution ofco-opetition based on collecting and collating extensive literature about co-opetition,which helps me find out the shortage of the current research. On this basis, this papertakes the behavior of the competition and cooperation between enterprises in the sameindustry as the entry point for research to study the co-opetition of “Wang laoji”between Guangzhou Pharmaceutical Holding Limited and JDB by using the methodof theory-driving case study. This paper analyzes four different degrees and types ofco-opetition state including ‘weak competition, weak cooperation’,‘weak competition,strong cooperation’,‘strong competition, weak cooperation’ and ‘strong competition,strong cooperation’ between enterprises by narrating story of “Wang laoji” and timinganalysis of competition and cooperation between Guangzhou Pharmaceutical HoldingLimited and JDB. Then this paper carries out a detailed analysis on corporateperformance and market performance under the four co-opetition states.This paper also verifies the relevant conclusions about the co-opetition betweenenterprises by studying the case as well as making the necessary complement. At last,the paper points out the shortage of the current research and the further researchdirections.