Compete or Cooperate: Understanding of the Relationship Levels of Firms within same Industry

This paper tries to address various dimensions of the firm relationship that are competing in the same industry. Competitive strategies play an important role in a firm's survival and achieving sustainable competitive advantage. However, firms can also decide to cooperate through the mobilization of resources to ensure mutual benefit and thus promote healthy competition. A strategic dilemma may occur for competing firms to cooperate with others who traditionally believe in competition, profit orientation, and self-interest. This paper tries to address firm-level responses and interactions amongst each other in various consequences by relying on an exploratory method of research. Firms competing in the same industry may opt for four different strategic options named, competition, cooperation, coexistence, and competition. Through the literature review, different forms of firm-level relationships are explained under these four strategic options. This paper argues that cooperation is beneficial and may complement healthy competition among competing firms