A Portfolio Diversity View of Coopetition: The Air France Case

A Portfolio Diversity View of Coopetition: The Air France Case

At next weeks 0823 we will have a paper written by our two French guests, Anne-Sophie Fernandez and Paul Chiambaretto. The paper is called, “A Portfolio Diversity View of Coopetition: The Air France Case” and it focuses on coopetition strategies at a portfolio level. The paper delves into how coopetitive agreements are blended with cooperative agreements in the Air France’s alliance portfolio.

As always, the full manuscript will be distributed via email.

Abstract: As most contributions on coopetition remained at the dyadic or network level, we offer an analysis of coopetition strategies at the portfolio level of a focal firm. More precisely, we focus our attention on the diversity of agreements in the alliance portfolio to understand how coopetitive agreements are blended with purely cooperative ones. Using a longitudinal in-depth case study, we analyze Air France’s alliance portfolio from 2000 to 2011 by focusing on the different relational modes selected (coopetition or pure cooperation) and on the structure of the agreements (horizontal, vertical or mixed). We show that the share of coopetition in the alliance portfolio is not constant and may evolve according to the level of market uncertainty. In addition, we highlight that the focal firm tends to mix different forms of coopetition (horizontal, vertical and mixed) in order to balance its exploration and exploitation needs.

Key words: Coopetition, Alliance portfolio, Diversity, Market uncertainty, Exploration/exploitation framework