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Strategic Coopetition of Global Brands: A Game Theory Approach to ‘Nike + iPod Sport Kit’ Co-branding

  • Rodrigues, Flávio
  • Souza, Victória
  • Leitão, João

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16146.

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Date of creation: 07 Jul 2009
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Handle: RePEc:pra:mprapa:16146
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  1. Nakayama, Mikio, 1980. "Nash Equilibria and Pareto Optimal Income Redistribution," Econometrica, Econometric Society, vol. 48(5), pages 1257-63, July.
  2. Abratt, Russell & Motlana, Patience, 2002. "Managing co-branding strategies: Global brands into local markets," Business Horizons, Elsevier, vol. 45(5), pages 43-50.
  3. 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.
  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, vol. 34(1), pages 53-65, January.
  5. McCracken, Grant, 1986. " Culture and Consumption: A Theoretical Account of the Structure and Movement of the Cultural Meaning of Consumer Goods," Journal of Consumer Research, University of Chicago Press, vol. 13(1), pages 71-84, June.
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