Abstract: Competitive alliances formed by rivals have become the focus of researches on alliance theory. Aiming at asymmetric competitive duopoly in a district and both the R&D and the marketing stage,this paper analyzes the equilibrium of R&D investment and profits under non-cooperation and forming R&D and co-marketing competitive alliance. As a result,we find the win-win area of competitive alliance formed by rivalrous duopoly. The result is beneficial to Chinese firms to enter global market and raise global competitiveness through the relationship of competition and cooperation.

Key words: competitive strategic alliances, cooperation and competition, duopoly, joint R&D, co-marketing