COOPETITION AS A BUSINESS STRATEGY THAT CHANGES THE MARKET STRUCTURES: THE CASE OF LONG-DISTANCE PASSENGER TRANSPORT MARKETS IN POLAND.

Purpose: This paper concerns the phenomenon of two-way causality effect between market structures and coopetition occurrence. It is assumed that certain characteristics of an existing market structure implicate the decision to deploy the strategy of coopetition by companies. Moreover, the opposite effect might be expected, that is coopetition between market rivals changes the market structure on which it was implemented in the first place. In the paper various aspects and approaches of the abovementioned phenomena have been considered. Design/methodology/approach: The author investigates the events, motives and values that lead companies to deploy the coopetition strategy. Furthermore, the theoretical and conceptual bases for the effect of the coopetition impacting the change of market structures have been provided. A wide analysis of managers’ decision resulting from the occurrence of certain strategic events has been conducted with the use of comparison matrixes. Finally, in the last part of the study the author’s empirical research on two passenger transport relevant markets has been presented. Findings: Certain market strategies characteristics affected companies to deploy the coopetition strategy and the other way round, the strategy changed the market structure in the result of competitors’ decision. Taking into consideration all of the theoretical, conceptual and empirical aspects raised throughout the course of the research, both hypotheses have been confirmed. Research limitations/implications: The author has used mostly qualitative methods such as observation, conceptualization or cause and effect analysis in which the natural existence of errors might occur. To test the hypotheses the researcher had to create assumptions and models that represent what should happen if every aspects successfully appear. It might be expected that some other variables affected the market structures during the research that the author was not aware of. Thus, one should interpret the results with the inclusion of the ceteris paribus. Practical implications: Instead of applying the high cost strategies such as price wars or demand seeking, one might use the coopetition to create added values with little or even zero cost. What is more, this strategy may result in higher pricing power, higher market size or better level of innovation. Originality/value: The publication discusses the coopetition phenomenon from the innovative perspective of two-way causality (influence) between market structures and coopetition itself while most of the studies concern only one-way cause and effect between those variables. Conclusions drawn from this paper can be useful for entrepreneurs and their decision making process. [ABSTRACT FROM AUTHOR]