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Cooperation vs. Competition

What would be better for a merchant? Cooperate or compete with opponents? These questions are very difficult to answer because it is very difficult to predict what actions each employer will take and much more if the other agrees. The dear friend @spectrumecons has proposed a challenge in which we must decide which of these options we should choose taking as an example 4 bakeries, each with its characteristics. You can visualize these characteristics by following the link.

In my opinion, the only bakeries that would be willing to cooperate are the two smaller Yummy Yum Yum and Draxton's Cakes since the two largest Thompsons and best buy already have their profits and customers practically insured, Thompsons for being the giant that possess a great number of customers and best buy that despite being relatively new has a machinery capable of performing the products more efficiently, this guarantees that over time its growth would be exponential, for this reason it would not have to cooperate with Yummy Yum Yum and Draxton's Cakes to take Thompsons out of business. Thompsons to my understanding to eliminate the nascent competition of best buy, you should update your equipment this would put you in the same circumstances as best buy. It is for them that these two great ones would remain reluctant to cooperate. Rather, competing would be best for them since they would take Yummy Yum Yum and Draxton's Cakes out of business.


On the other hand, Yummy Yum Yum and Draxton's Cakes seem destined to fail, that is why the most logical strategy would be to join together to overcome their actuality, the only point in their favor is the personalized merchandise that none of the others can recreate, and among them could focus 100% on the sale of these products, to sell the products of the other bakeries if they can not buy ingredients in bulk, their prices would surpass those of Thompsons and Best buy. It is because of them that these bakeries should dedicate themselves to their original products in order to gain new clientele and not enter a broken bank. This is my proposal I hope it has seemed logical.