Framework
Mutualistic Competition Matrix
TL;DR
Mutualistic Competition Matrix - strategic framework from The Biology of Business.
A 2x2 matrix that helps diagnose whether competitive dynamics should shift from antagonistic to mutualistic by mapping industries along multi-homing cost and infrastructure overlap dimensions.
When to Use Mutualistic Competition Matrix
When evaluating industry competitive structure, when considering cooperation with rivals, when assessing whether winner-take-all dynamics apply, or when experiencing destructive price wars.
How to Apply
1
Assess Multi-Homing Cost
Determine whether customers can realistically use multiple competitors simultaneously.
Questions to Ask
- Can customers use both you and competitors at the same time?
- What is the switching cost between competitors?
- Do customers maintain relationships with multiple vendors?
Outputs
- Multi-homing cost classification: Low or High
2
Assess Infrastructure Overlap
Determine whether competitors share standards, technology, or supply chains.
Questions to Ask
- Do you share technical standards with competitors?
- Do you rely on common supply chains or platforms?
- Could cooperation on infrastructure benefit both parties?
Outputs
- Infrastructure overlap classification: Low or High
3
Plot Position on Matrix
Identify which quadrant your industry occupies.
Outputs
- Quadrant: Mutualistic Competition, Contested Standards, Differentiated Coexistence, or Destructive Arms Race
4
Determine Strategy
Select appropriate competitive approach based on quadrant.
Outputs
- Strategic recommendation for your quadrant position