The Cooperate Coopetition Mindset

Although stability is the foundation of any ecosystem, flexibility in the modern world is also one of the essential and critical features for a business’s survival and, therefore, the ecosystem.
Coopetition is the crucial word that opens new doors to new markets in business ecosystems. Nalebuff and Branden’s burger initially introduced the concept of Coopetition in strategy conversations. They discovered that cooperation and Competition could simultaneously be components of a relationship to be called accompanying competition/cooperation. Concurrent Competition attempts to combine the two aspects of Competition and cooperation and provide a more realistic approach to business relationships.
While Competition is based on the principle that individuals act to maximize their benefits, the philosophy of cooperation is that individuals participate in collective activities based on win/win relationships to achieve common goals.
With a collaborative, competitive outlook, the idea of Coopetition within companies offers dual benefits to be archived by working together while simultaneously competing in areas organizations have never been able to play before. The Coopetition mindset permits solutions to expand into new customer bases and accentuate several benefits such as inspiration for innovations, the incentive for new partners, development of technology, obtaining common resources, entering new markets, creating new products, and defining new goals.
In a state of Competition, economic value is created within the company; therefore, gaining importance from one company means losing value from another. The company relationship is based on a zero-sum game, meaning winning and not leaving anything for the competitor. In contrast, in a plus-sum match, both parties share the profit by working together.
The complexity of the digital era and new technological systems have aggressively increased the competitive momentum and created significant turbulence among players, raising the importance of relationships between companies to create value and improve organizational performance.
Today, the sources of economic value creation and the roots of the company’s superior performance are embedded within the structure of the company’s relations and not restricted nor confined to our own game. Therefore, a strategic alliance between two firms empowers and strengthens the organizations to develop new market opportunities, formulate robust business strategies covering a larger domain, and produce products and services to reach customers outside the borders and grow the Industry.
To name some of the significant rationale and advantages of adopting the coopetition approach, we can magnify how organizations benefit from increasing the market size, products, and services and expand the current market’s magnitude or develop a whole new market by introducing new products in conjunction, where their costs and risks will also be minimized. Secondly, this strategy enables businesses to integrate resources and assets with fewer risks and better efficiency. Lastly, companies that combine through Coopetition will acquire a larger market share and may beat competitors.