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Strategic coopetition of global brands: a game theory approach to 'Nike + iPod Sport Kit' co-branding

Author

Listed:
  • Flávio Rodrigues
  • Victoria Souza
  • João Leitão

Abstract

Co-branding can be implemented by establishing an agreement of strategic coopetition that allows companies to compete and cooperate simultaneously in order to obtain competitive advantages through operational synergy. With this type of agreement, brands enter markets sharing loyal customers they would be unlikely to reach individually. The main advantages associated with implementation of this form of strategic coopetition are the possibility of jointly communicating brand image, reputation and credibility in a global market where consumers tend to have homogeneous preferences and convergent lifestyles. The strategic coopetition between two global brands, Apple and Nike, through development of the 'Nike + iPod Sport Kit' product, serves as a benchmark to illustrate the benefits associated with implementation of coopetitive cooperation agreements. From application of the game theory, simulation of a game of strategic coopetition provided results that confirm global brands obtain benefits, albeit not in equal measure, in terms of adding value to the brand image at a world level.

Suggested Citation

  • Flávio Rodrigues & Victoria Souza & João Leitão, 2011. "Strategic coopetition of global brands: a game theory approach to 'Nike + iPod Sport Kit' co-branding," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 3(4), pages 435-455.
  • Handle: RePEc:ids:ijeven:v:3:y:2011:i:4:p:435-455
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    References listed on IDEAS

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    1. Abratt, Russell & Motlana, Patience, 2002. "Managing co-branding strategies: Global brands into local markets," Business Horizons, Elsevier, vol. 45(5), pages 43-50.
    2. Craig, C. Samuel & Douglas, Susan P., 2000. "Building global brands in the 21st century," Japan and the World Economy, Elsevier, vol. 12(3), pages 273-283, September.
    3. Nakayama, Mikio, 1980. "Nash Equilibria and Pareto Optimal Income Redistribution," Econometrica, Econometric Society, vol. 48(5), pages 1257-1263, July.
    4. Jan-Benedict E M Steenkamp & Rajeev Batra & Dana L Alden, 2003. "How perceived brand globalness creates brand value," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(1), pages 53-65, January.
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    Cited by:

    1. Thierry Warin & Nathalie De Marcellis-Warin & William Sanger & Bertrand Nembot & Venus Hosseinali Mirza, 2015. "Corporate reputation and social media: a game theory approach," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 9(1), pages 1-22.
    2. repec:spr:rvmgts:v:12:y:2018:i:2:d:10.1007_s11846-017-0266-8 is not listed on IDEAS

    More about this item

    Keywords

    co-branding; coopetition; global brands; brand value growth; game theory; branding; brand image; brand reputation; brand credibility; Apple; Nike.;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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