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

Authors: Flávio Rodrigues; Victoria Souza; João Leitão

Addresses: Instituto Superior Técnico, Center for Innovation, Technology and Policy Research, IN+, Technical University of Lisbon, Av. Rovisco Pais, 1049-001 Lisbon, Portugal. ' Instituto Superior Técnico, Center for Innovation, Technology and Policy Research, IN+, Technical University of Lisbon, Av. Rovisco Pais, 1049-001 Lisbon, Portugal. ' Polytechnic Institute of Portalegre, School of Technology and Management, University of Beira Interior, Convento de Santo António, 6201 001 Covilhã, Portugal; Instituto Superior Técnico, Technical University of Lisbon, IN+, Av. Rovisco Pais, 1049-001 Lisbon, Portugal

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.

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

DOI: 10.1504/IJEV.2011.043387

International Journal of Entrepreneurial Venturing, 2011 Vol.3 No.4, pp.435 - 455

Published online: 24 Oct 2014 *

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