Use Co-opetition to Build New Lines of Revenue

Harvard Business Review

The way forward is co-opetition, in which entities in the same industries act with what everyone recognizes as partial congruence of interests. Nalebuff have written in their book Co-Opetition , businesses that form co-opetitions become more competitive by cooperating. There [are] lots of co-opetitions.”. They’re now talking about joint ventures to develop a lightweight-hybrid truck.

Joint Ventures Reduce the Risk of Major Capital Investments

Harvard Business

Taiwan, and South Korea, respectively — agreed to fund a novel technology development program at ASML, a leading equipment manufacturer based in the Netherlands. The program creates risk sharing, and the results of ASML’s development programs will be available to every semiconductor manufacturer without restriction. Benefits and risks of co-opetition. In many industries, the capital required to build an asset of minimum efficient scale is growing.

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Why Your Company Should Partner with Rivals

Harvard Business Review

That strategy could be especially effective if the company priced access at the point just below the competitions' 'go/no-go' price for developing similar technology. The thinking behind this axiom began to be challenged in the mid-1990s, with the publication of smart, highly-regarded competitive strategy books, such as Co-opetition by Barry Nalebuff and Adam Brandenburger. There's a flawed belief that your only 'friends' in business are the enemies of your enemy.

Leadership Is About to Get More Uncomfortable

Harvard Business Review

Such “co-opetition” will require leaders to maintain a difficult dual perspective – rivals must be simultaneously seen as both vital partners and market threats. Organizations need to develop leaders who are motivated by altrocentric leadership. Employees used to know just your name, your face, your business reputation. Now they know your salary, your hometown, your connections on LinkedIn, how much your house is worth.

Old Management Systems Stifle New Business Models

Harvard Business Review

What’s important is that your management team is aware of these issues and can use that understanding to develop a solution that fits your business and allows you to deliver the most value to your customers. To adjust for these differences, managers of capital-intensive businesses have developed all sorts of tools and heuristics to help ensure that they’re building their balance sheets in the right way. Ask anyone in technology.