Coopetition is a business model in which firms or individuals engage in both cooperation and competition simultaneously, working together toward a shared goal or sharing resources in some areas while still competing with each other in others. In business strategy this often means companies collaborating on research and development, standard-setting, or supply chain management while continuing to compete on product offerings or market share, for example two technology firms jointly developing a platform standard while competing for end users. The arrangement can occur between rival organizations or between departments inside a single company.
Facts
Core MechanismCoopetition describes firms or individuals cooperating and competing with each other at the same time, for instance jointly developing a technical standard or sharing research while still competing head to head on price or market share for the same customers. It can occur between separate organizations or between departments inside one organization that compete for internal resources while still working toward the organization's shared goals. 1 Origin Year1913 is the earliest documented instance of the underlying practice, the Sealshipt Oyster System. The term itself was independently re-coined more than once since, notably around 1992 by Raymond Noorda and popularized by Brandenburger and Nalebuff's 1996 book Co-opetition. Cross-Tradition Connections
Associated With
Coopetition, simultaneous cooperation and competition between rivals, is commonly illustrated by technology and electronics companies that jointly develop components or standards while competing on finished products, such as Sony and Samsung joint LCD panel venture.
Sources
1. Wikipedia, Coopetition
WikipediaWikipedia: Coopetition, lead paragraphQuote, Wikipedia: Coopetition, lead paragraph
Coopetition (also spelled co-opetition, coopertition or co-opertition) is a concept in which firms or individuals engage in both cooperation and competition simultaneously.
1. Wikipedia, Coopetition
WikipediaWikipedia: Coopetition, Overview section, 1913 precedentQuote, Wikipedia: Coopetition, Overview section, 1913 precedent
The concept appeared as early as 1913, being used to describe the relationships among proximate independent dealers of the Sealshipt Oyster System, who were instructed to cooperate for the benefit of the system while competing with each other for customers in the same city.
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