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

A company sets up a joint venture with a partner that has complementary assets and capabilities, in order to limit up-front investments, speed up market entry, and reduce risk. Ageas contributes its expertise in insurance product design, marketing, finance, and risk management, while the partner, often a well-embedded local financial institution, contributes its customer portfolio, distribution channel, brand, and relationships. Benefits and risks of co-opetition.


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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

And along with this increased transparency, you’re held accountable for areas you know less about: new technologies, new markets, new cultures and geographies representing new stakeholders. Such “co-opetition” will require leaders to maintain a difficult dual perspective – rivals must be simultaneously seen as both vital partners and market threats. Companies must now appeal to a plethora of global consumer markets, each with distinctive attitudes and desires.

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.