Clashes between contending market regimes : a challenge for firms in converging industries

• Purpose – The purpose of this paper is to develop a conceptual framework that describe three contending market regimes in converging industries, and to use this framework to study clashes between the different regimes and the implication they have on firms’ competitive strategies and on the interaction among competitors. More specifically, it is the challenges that develop when competitors simultaneously are acting in accordance with a competitive, a cooperative, and a co-opetitive market regime that are elaborated upon.Design/methodology/approach – An exploratory study of the interaction between firms within the IT and Telecom industry is conducted using a case study approach with in-depth interviews with 30 informants within the industry together with secondary data.Findings – The paper brings forward clashes between different market regimes in converging industries and six propositions are formulated.  The study furthermore shows how firms respond differently to a demand-driven convergence, some act in accordance with a competitive regime and try to exclude others whereas others act in accordance with the co-opetitive regime and cooperate with competitors to develop new product offers.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Keyword

co-opetition

industry convergence

acqusition

market regimes

strategy

Business studies

Företagsekonomi

företagsekonomi

Business Studies

Publication and Content Type

ref (subject category)

art (subject category)