Driving Digital Business Transformation on

Coopetition Business Model in the Revolutionary

Era 4.0 in Indonesia:Case Study Blue Bird and
GO-JEK
Arifianita Febrina Putri, Hendry Tju, Muhamad Insan Rizky, Tifanny Nabarian, Valentinus Paramarta, Wahyudin
Buca Kalauw, Muhammad Rifki Shihab, Benny Ranti
Faculty of Computer Science
University of Indonesia
Jakarta, Indonesia
arifianita.febrina@ui.ac.id, hendry82@ui.ac.id, muhamad.insan81@ui.ac.id, tifanny.nabarian@ui.ac.id,
valentinus.paramarta81@ui.ac.id, wahyudin.buca@ui.ac.id, shihab@cs.ui.ac.id, benny.ranti@cs.ui.ac.id

Abstract—Business model innovation is critical for
company because it can affect company competitiveness and
leverage their values. Coopetition in broader terms can be
explained as two or more competitive companies that tried to
increase their values by collaborating with each other. One
example of coopetition that occurs in Indonesia is between
conventional taxi company, Blue Bird and an online ride-
sharing company, GO-JEK. In this study, we tried to analyse
their coopetition phenomenon with perspective of Blue Bird
using a qualitative research methodology. The research
consists of creation new coopetition business model between
these two companies, classification of coopetition business
model that occurred, and the implications for Blue Bird's
business. The results showed that there are 3 factors in Context
analysis (Competition, Cooperation, and Customer Segment), 2
factors in strategy analysis (Management and Technology), 3
factors in capability analysis (Leadership; People and
Partners; Process and Infrastructure), and 3 new values
offered by the coopetition business model.
Keywords—business model, coopetition, GO-JEK, Blue Bird,
digital business
I. INTRODUCTION
Today, business models are increasingly a priority for
managers in terms of achieving competitive advantage that
can achieve excellence [1]. Business model innovation is
critical for new companies as well as long-standing company
because it affects their competitive position and survivability
[2]. Many organizations carry out business models with a
focus on the selling power of their products [3]. Matthyssens
et al. [4] provide related new business strategies that aims to
overcome competition by developing a new market based
value innovation. One of that new strategies is coopetition,
which is a strategy that combines dualistic nature of
competition and cooperation to create new value [5].
Recent studies in the field of business and management
argue that the diffusion of technology and progress in the
digital era has enabled the development of new ways to
create, produce and distribute shared values [6]. Several
advancement helping in utilization of coopetition are
expansion of the internet, the rapid decline in the cost of
investment for digital technology, the diffusion of open
source, and the increasing skills of human resources in the
field of computing [7].
One example of the Coopetition phenomenon that occurs
in Indonesia is between Blue Bird and GO-JEK. It is known
that GO-JEK was established in 2010 which provides
transportation services via ojek services and in 2016 GO-
JEK issued a car booking service that can be used as a means
of transportation (GO-CAR). It is reported from several
sources that the presence of the GO-CAR turned out to have
a negative impact on Blue Bird's revenue growth [8]. It was
found that Blue Bird's last revenue growth occurred in 2015,
when Blue Bird's revenue rose 15 percent to Rp. 5.47 trillion
from Rp. 4.75 trillion a year earlier. However, in the
following year (2016), Blue Bird's revenue dropped 12
percent to Rp. 4.79 trillion as the impact of the proliferation
of online taxis, especially in Jakarta, Depok, Tangerang, and
Bekasi (Jadetabek) [8]. This condition made Blue Bird
cooperate with GO-JEK which was announced in May 2016,
then in January 2017 Blue Bird service can be accessed
through GO-CAR and the GO-Blue Bird feature was
launched in March 2017 [9].
This phenomenon provides research opportunities in
creation of coopetition business models that occur between
Blue Bird and GO-JEK. Although this is considered
important in several studies, research related to the
coopetition business model is still very lacking [10]. So in
this study an analysis will be carried out by integrating a
business model perspective with an analysis of the
coopetition that occurs between Blue Bird and GO-JEK. The
analysis will be carried out using the Blue Bird perspective,
and the data obtained are the results of annual reports,
financial reports and news from Blue Bird.
II. LITERATURE REVIEW
A. Business Model
Applegate, L et al. [11], defines business model as how
an organization interacts with its environment with the aim
of defining a unique strategy, using resources and building
the capabilities needed to execute the strategy, and provide
value to all stakeholders.
 Teece [12] specifically explains that business models as a
generic platform between strategy and practice, which will
explain the design or architecture used by companies in
shaping and delivery of the value. Amit & Zonn [13] defines
things similar to Teece [12] but adds new elements which is
company processes.
In business model innovation, Velu [14] argues that it
involves a more systematic change due to the customer value
proposition, value creation, and capture. Therefore one needs
to study not only from the perspective of own company but
also transcending the firm boundary. Chim-miki A. F. [15]
explain there is a needed framework for analysing the
coopetition business model, in their research they found 3
level explaining the coopetition business model, which are:
Context, Management, and Result.
B. Coopetition
Coopetition in general can be interpreted as collaboration
between competing companies [10]. Coopetition produces
value through cooperation between competing companies,
the emergence of value makes it necessary for new business
models to be able to benefit from their collaboration. The
research of Chin K. S. [16], mapped the coopetition business
model based on several types to be able to find out the
degree or level of competition and cooperation carried out
between these companies. The model can be seen in Fig. 1.
Explanation of each matrix in Fig. 1 as follows [16]:
• Matrix 1: Monoplayer (low competition, low
cooperation). Monoplayer type is a model where
company does not interact significantly with
competitors, maintaining a low level of competition
and cooperation with its competitors. Examples:
Microsoft and SunMicrosystems
• Matrix 2: Contender (high competition, low
cooperation). Contender is a model where the
company cooperates with competitors for market
power, competitive position, and market share. But in
doing the cooperation is done as low as possible.
Example: Kodak and Fujifilm
• Matrix 3: Partners (low competition, high
cooperation). The partner is a model where the
company maintains high cooperation and low
competition with the aim of finding synergies through
the sharing of resource use and capabilities. Example:
Sony and Ericson.
• Matrix 4: Adapter (high competition, high
cooperation). Adapter is a model where companies
Cooperation
Low High
Competition
High Type 2 : Contender Type 4 : Adapter
(High Competition, (High Competition,
Low Cooperation) High Cooperation)
Type 1 : Monoplayer Type 3 : Partner
(Low Competition, (Low Competition,
Low Low Cooperation High Cooperation)
Fig. 1. Classification of Coopetition Model [16]
and competitors mutually depend on one another to
achieve goals. Example: Hitachi and Hewlett-
Packard.
III. METHODOLOGY
Our research will be conducted using a qualitative
method, which is a research method to obtain a
comprehensive analysis of the phenomena that occurred, it is
also known that qualitative method is suitable for conducting
research related to business networks [17]. Research will be
conducted using Blue Bird as a descriptive case study to
explain the phenomenon of coopetition that occurred with
GO-JEK.
A. Data Preparation
To conduct this research, we used an approach similar to
the research conducted by Ritala [10]. Blue Bird related data
collection is conducted between 2015-2017, data collection
is obtained from secondary data sources which are then
accessed, analysed and synthesized in such a way as to
produce a good understanding between Blue Bird and GO-
JEK coopetition. The main data obtained are: 1. Annual
report from Blue Bird, 2. Blue Bird investor relation
presentation, and 3. News.
B. Coopetition model proposition
We proposed a model based on basic condition to
generating a coopetition business model, these preconditions
are optimized through a strategic management. Then based
on strategic management we developed the capabilities of
Blue Bird regarding coopetition and finally we proposed the
value created due coopetition business model for Blue Bird.
IV. ANALYSIS AND IMPLICATION
In this section we will analyse the strategies, capabilities
and values produced due to coopetition between Blue Bird
and GO-JEK, the analysis will be using a framework based
on [15] and the results will show how business model
coopetition between those 2 companies. Then, we will also
classified the coopetition business models that are ongoing
between Blue Bird and GO-JEK so that in the end of the
session we will propose a strategy analysis that is suitable for
future implementation by Blue Bird.
A. Analysis Business-Model Coopetition Blue Bird and GO-
JEK
Chim-Miki A. F. [15] created a coopetition model
framework that can be used to describe coopetition events in
the tourism sector. The results of the framework illustrate 3
(three) levels, namely at the lowest level describing the
contextual conditions of the coopetition relations that are
experienced. The middle section describes the management
carried out to deal with the coopetition. At the top level,
explained the value given by coopetition.
Based on framework by Chim-Miki A. F. [15], several
modifications were made to describe the state of the
coopetition business model of Blue Bird using business
model theory from Applegate, L. [11]. The new framework
model can be seen in Figure 2. Following is an explanation
of the factors contained in the framework (Table 1).

Fig. 2. Coopetition Framework Model of Blue Bird and GO-JEK [11] [15]
1) Context
For the lowest level framework, we analyzed the concept
of contextual coopetition to fully understand what drives
Blue Bird to cooperate with GO-JEK while competing with
it. We propose three initial contextual conditions that drive
the formation of a coopetition business model Awareness of
customer segments is one of the three conditions. [14]. Blue
Bird sees the potential of customer segments, which is a high
customer concentration. However, there is gap in which Blue
Bird and GO-JEK may not be able to cover their services for
all customers if they do not work together [8], [9]. The next
condition is Blue Bird’s awareness of the competition it
faces. The competition Blue Bird felt is similar to what it felt
from external business competitors as well as newcomers
with a disruptive business model [8], [9]. In terms of external
business competitors, Blue Bird strives to continue to
innovate so that the value it provides is better than its
competitors [8], but it is difficult to implement that strategy
against competition from disrupted businesses, such as GO-
JEK. Thus, Blue Bird faces conditions where increased value
can no longer overcome competition due to disruption [18].
Thus, Blue Bird found that it was not fully able to overcome
competition against disruption, so it tried to cooperate with
the disruptors. Fremont et al. [19] states that cooperation can
provide several benefits for a company in terms of
innovation, collaboration, and trust. Velu [14] noted that a
coopetition business model entails the sharing of resources
(including money, people, facilities). In terms of innovation,
Blue Bird has the confidence it needs to be able enhance its
innovative efforts through cooperation with GO-JEK [19]. In
collaboration, Blue Bird knows the capabilities that GO-JEK
can offer, which is a platform for online ride-sharing. For
trust, according to Michael Tene, Head of Investor Relations
at Blue Bird, Blue Bird trusts GO-JEK because GO-JEK is
an Indonesian company [20].
2) Strategy
After understanding the initial driver for coopetition, we
tried to analyse the strategies proposed by Blue Bird for
coopetition with GO-JEK. From the framework (Fig. 2), we
divided the strategies into two categories, namely in terms of
strategies for technology and strategies for management.
Blue Bird’s management strategy is focused on
collaborating and innovating by co-marketing an application
with GO-JEK. In its marketing efforts, Blue Bird focuses on
the GO-CAR feature, called GO-Blue Bird, so customers can
enjoy the services of a Blue Bird taxi using the GO-JEK
application platform with the rates listed on the GO-JEK
application [9].
In terms of its technology strategy, Blue Bird’s
collaboration with GO-JEK through its platform has
benefited Blue Bird in being able to compete in GO-JEK’s
market share [21]. To accelerate the digital revolution,
partnerships with GO-JEK also include innovative ways of
paying for services [22]. In sharing platforms, Blue Bird
customers can use the electronic payment system, GOPAY,
to complete payment transactions for services [22]..
3) Capability
To support collaboration with its competitors that have a
technological base, Blue Bird has implemented a new
organizational structure with new directors, departments, and
talents [23]. Thus, Blue Bird has introduced an Information
Technology Department, led by the company’s CIO (Chief
Information Officer) and a Marketing and Communication
Department, led by the CMO (Chief Marketing Officer),
whose function is to communicate with customers through
social media channels [18], [23]. Blue Bird has also created a
Business Transformation Office Department, which has the
task of encouraging strategies in the field of digital business,
so the existing team can focus on executing existing
programs [23].
As a step to strengthen human resources, in the past two
years Blue Bird has recruited new talent to fill the middle
management position and appoint new leaders from the
supervisor level. Blue Bird actively encourages the
improvement of talent and human resource capabilities with
various development programs including internal
engagement, strategy, leadership and change mindsets [23].
With the collaboration between Blue Bird and GO-JEK,
Blue Bird has shifted its business processes, creating new
ones. While the initial business processes focused on
competing with GO-JEK, the new business processes focus
on sharing platforms [26]. The executive management
support and leadership between Blue Bird and GO-JEK can
be illustrated through the commitment of both company’s
leaders to carry out sustainable cooperation [24].
In terms of Blue Bird leadership, in one of his
interviews, Sigit P. Djokosoeton express great concern about
 TABLE I.
Factor
Customer
This factor arises due to the similarity
(shared) characteristics of consumers
Cooperation
This factor verifies the cooperation of
both company, in order to generate
coopetitive advantage [15].
Competition
This factor verifies the internal and
external business environment and the
degree of competition because the
balance among competitiveness and
cooperation acts directly on an
entrepreneur's behavior toward
coopetition [15].
Strategy: Technology
Overall plan which consists of
strategies relating to the use of
technologies within coopetition
companies [26]
Strategy: Management
This checks the capacity to generate
shared processes and actions among the
stakeholders, as well as, the level of
governance awareness [15].
Process and Infrastructure
This analysis should address core
processes required to produce products;
deliver services; acquire and serve
customers; manage relationships with
key stakeholders; and deliver a
continuous stream of new products,
services, and innovations [11].
People and Partner
Armed with an understanding of end-to-
end processes, evaluate whether the
company has the expertise needed to
carry out the required activities and
processes [11].
Leadership
Effective leaders use governance
structures and systems to balance the
creativity and vision needed to set goals
and prioritize investments with the
discipline needed to execute and deliver
results [11].
Coopetition Value
This verifies the degree of coopetition
value [15].
EXPLANATION OF FACTORS AFFECTING COOPETITON BUSINESS MODEL
Indicator Explanation Findings
Study shows that one of driver for company to
Size High concentration of customers
adopt coopetition business models is due to size /
which also have a different
concentration of customers, and also the
Type customers segments.
penetration to customers [14].
Innovation Different nature of Blue Bird and
GO-JEK, which Blue Bird found
Collaboration Chim-Miki A. F. [15] confirm that several
that they can cooperate to take
Technology and indicators toward a cooperation are innovation,
advantage of each capabilities.
Business collaboration, and mutual trust.
Blue Bird offers a capabilities in
Trust form of their services (taxi) [25].
Awareness of Blue Bird in
Newcomers competition due to external forces
Competitors and also due the newcomers
Chim-Miki A. F. [15] confirm that several
which disrupt the competition in
indicators toward a competition are internal
transportation services. This also
competition and external competition.
External Competitors shown in declining of
profitability obtained by Blue
Bird in 2016 and 2017 [18].
We found that Blue Bird focused
Using a platform to utilize common facilities
Sharing Platform in using technology platform
offered by more than one service provider [27].
created from GO-JEK, by using
the GO-JEK App customer can
A central concept that integrate all coordincation,
Digital Transformation also found Blue Bird taxi for their
prioritization, and implementation of digital
Strategy services [22].
transformation in an organization [27].
.
Join Marketing
Program Chim-Miki A. F. [15] confirm that several Blue Bird focused in
indicators toward a strategy management are collaboration for marketing and
Innovation Program
join-marketing program, innovating program, innovating on application
Value Co-Creation and value co-creation program. collaboration [25].
Program
Understanding New
We found that Blue Bird prepares
Process Dahl [28] demonstrates the concept of changing
a new organizational structure
interactions between competitors. They have to
[18], [23] to encourage a strategic
change the process to adopt cooperation and
Standardization collaboration with GO-JEK and
competition creating new experiences in internal
Mobile also in transforming their
and external processes of the business.
Transformation business to digital.
Training of New
Talents Blue Bird actively encourages the
Applegate, L. et al has confirmed that people and improvement of talent and human
Performance Matrix partners are a factors of capability analysis [11] . resource capabilities with various
Measure development programs [23]
Management commitment is needed for the
success of every initiative from the organization.
Leader Support This reflects the level of management support in
Due to collaboration of Blue Bird
implementing coopetition. Without management
and GO-JEK, Blue Bird shifted
commitment, coopetition will not work [3].
their business process creating a
By Understanding the Role of IT in an
new business model that sharing
Organization, the Executives of the company can
their platforms. The commitment
evaluate the IT leadership that has been applied.
Good Leader of two leader can be illustrated by
The roles played by IT in organizations greatly
Capabilities the signing of memorendum [29].
influence the approach used to identify
opportunities, design, and implement IT-enabled
business initiatives [11].
Several studies have analyzed how simultaneous
cooperation and competition (coopertition) can
Innovation Domain The value created by coopetition
increase value creation of technology
of Blue Bird and GO-JEK, from
development and product innovation [30].
the perspective of Blue Bird are
Coopetition provides benefits in the formation of
the usage of innovation platform
value for the domain market which includes
Market Domain from GO-JEK, obtaining a
increased sales, profitability, and market share
market domain with GO-JEK and
[10]
finally with the coopetition with
Experience becomes an important lesson for
GO-JEK, Blue Bird gain
organizations to be able to continue innovating,
Coopetition experience in forming new
where experience also inspires in terms of
Experiences strategy.
leadership carried out within the organization
[29].
the company’s IT management [23]. Before 2017, the
company’s IT department was overseen by a general
manager because IT was only a support system for Blue Bird
[11]. However, in 2017, IT became an important part of the
company; the role of IT changed from only providing
support to be an integral part for interaction with customer
[11]. The change in the role of IT has also changed the IT
leadership at Blue Bird, which is now supervised not by the
general manager level but decision-makers at the director
level [11],[23]..
4) Value
Coopetition offers high potential for value creation due to
the dualistic nature of coopetition: competition and
cooperation. Based on research by Bouncken [29],
coopetition can have advantages, such as pooled market
power against rivals that are not part of the coopetition
model. In terms of market development or extensions,
coopetition can also facilitate radical or incremental
technology development and innovation.
In our research on the Blue Bird and GO-JEK coopetition
business model, we found that the value created by their
coopetition can be categorized based on three domains:
innovation domain, market domain, and coopetition
experiences [29]. In the innovation domain, we found that
Blue Bird collaborated in using technological platform
innovations that had been developed by GO-JEK. This
finding is in accordance with the finding reported in a
research study conducted by Bouncken [29], which stated
that one of the valuable outcomes of coopetition is in the
field of R&D capacity, which encourages future innovation.
For the market domain, through its collaboration on
innovations with the GO-JEK platform, Blue Bird increased
its ability to tap into shared synergy. This shows that, by
using the application platform, Blue Bird gained access to a
market segment that was previously controlled by GO-JEK.
Coopetition experiences, understanding, and learning enable
an organization to increase its efficiency and identify new
opportunities to create value. Organizations will improve
their understanding of how they can combine resources,
adapt their technologies, and approach markets, while
reducing the negative influences of critical behavior and
failures [29]. As seen in the case of Blue Bird, that
experience provides new insights, such as in improving the
company’s strategies and capabilities so it can continue to
innovate.
B. Classification of Blue Bird and GO-JEK Business Model
Based on the type of business model theory from Chin K.
S. [3], we mapped the classification of coopetition business
model from Blue Bird and GO-JEK. We found that Blue
Bird cooperate with GO-JEK only in the technology sector
through the GO-JEK application platform.
This shows that the coopetition is still in Type 2, where
in fact the competition that occurred is high while the
cooperation carried out is only limited only to the use of the
GO-JEK platform. So the strategy offered is actually a
strategy with low barrier to entry [11], which then explain
why Blue Bird still maintains and develops the MyBlueBird
application as another strategy.
C. Implication for Blue Bird Strategy
Blue Bird took the strategic initiative to collaborate with
the ride sharing transportation platform, GO-JEK, to
suppress the challenges arising from the presence of
disruptive technology. Blue Bird's collaboration makes it
easy for consumers to order regular Blue Bird taxi services
through the GO-JEK application. In addition, through this
collaboration Blue Bird can expand the market by providing
Blue Bird taxi services to the consumer base that has been
using the GO-JEK application. However, the presence of
collaboration with the GO-JEK platform did not change Blue
Bird's strength, namely service. Blue Bird will remain
committed to providing safe, convenient, easy and
personalized services (ANDAL) [31].
Classification of coopetition shows that coopetition of
Blue Bird and GO-JEK is still in Type 2, which have a low
barrier to entry [16]. This is also shown by Blue Bird
technology strategy itself which focused on the preparation
and strengthening of the internal IT system backbone for the
development of their digital business. The sharing platform
with the GO-JEK application was also accompanied by
improvements to the My Blue Bird application so that it was
more comfortable to be used by customers, especially the
millennial segment, a segment that Blue Bird had not thought
of. These improvements include: driver tracking feature,
estimated pickup waiting time, and taxi booking features for
the future [25]. Alternative non-cash taxi payments are also
added to provide convenience and comfort for Blue Bird
customers in making transactions.
Based on the analysis, we encourage Blue Bird to use
sharing platform strategy to coopete not only with GO-JEK
but also with other companies. By using sharing platform
strategy, Blue Bird can increase public access to the
transportation services provided. The increased access to
public is expected to support the omnichannel strategy that
have been implemented by Blue Bird [32]. The success in
implementing omnichannel strategies by creating synergies
between offline and online channels owned by Blue Bird can
have a positive impact on digital transformation activities on
Blue Bird [33].
This research also provides contributions for coopetition
strategy literature and it can help Indonesia’s companies to
gain awareness of coopetition business model that has
occurred in the traditional company (Blue Bird) and
disruptive/digital company (Go-Jek). Other implications of
this study are for other traditional or disruptive company to
try to apply coopetition strategy because it has the potential
to guide both companies in creating or improve company
strategy, increase resources, or even creating new values.
D. Limitation
Our paper has several limitations, the first one is our one-
sided evaluation of dyadic relationship. The second one is
due to our reliance on using only secondary data. We
believe, however, that the propositions presented here are
sufficiently universal and future research could further
examine their applicability using quantitative approaches
such as using decision analysis to calculate the coopetition-
based level of two more companies.
 V. CONCLUSION
This paper illuminates the coopetition business model
between Blue Bird and GO-JEK, showing that there are 4
level in coopetition model framework in creating their new
coopetition business model. The cases show cooperation and
coopetition nature of these competing business in
perspectives of Blue Bird, indicate that Blue Bird cooperate
with GO-JEK in technological ways such as sharing
platform, but compete in other areas like value-added
business practices, price, service and quality.
We also mapped the coopetition model of Blue Bird and
GO-JEK to Type 2, Contender, which has a characteristic of
high competition but low cooperation. This is due to the
cooperation nature which only to technological level, and
implied to the strategy taken by Blue Bird to keep enhancing
their own application, MyBlueBird.
VI. ACKNOWLEDGEMENT
This research is funded by the 2019 PITTA B Research
Grant, Universitas Indonesia, contract number: NKB-
0513/UN2.R3.1/HKP.05.00/2019
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