Sharing Sales and Service Networks with Competitors : A Multiple-case Study in the Heavy Truck Industry

Abstract: In the heavy truck industry, sales and service networks play an important role. Investments in network infrastructure are costly, and to be profitable, there is a critical service volume to fulfil. This is especially challenging in new markets, where service demand is low and uncertain. A possible solution is to share sales and service networks with competitors. Simultaneous cooperation and competition, co-opetition, is a complex and contradictory phenomenon that has been previously researched, but with focus on cooperation in input activities like R&D. This thesis investigates co-opetition in output activities, in sales and services, by analysing how heavy truck companies could form competitor partnerships in sales and service networks. This is done by a literature review and a multiple case study. From the analysis, a framework for assessing and designing potential competitor partnerships is presented. The framework consists of seven factors that are significant for competitor partnership success in sales and service networks; cultural fit, noncompeting products, compatible goals, excess network capacity, dedicated salespersons, high commitment, and patient implementation. This thesis contributes to science by research on co-opetition research in output activities, and by a discussion on the meaning of competition, success and partnerships.