Welcome back and we are bringing you another emerging topic for this week’s Aenco Academy: coopetition. The emerging concept of coopetition is seen not just in the start-up sphere, but it is also extra prevalent during COVID-times. Join us as we unveil the phenomenon with the latest examples and discuss the significance of ‘coopetition’. #aenco #coopetition #innovative #tech
What is Coopetition?
‘Coopetition’ is a new emerging concept that interjoins the words ‘competition’ and ‘cooperation’. In pain language, coopetition means the equilibrium between competition and cooperation, and the joint forces will tend to benefit more in a market competition — a so-called- ‘win-win’ situation. In other words, coopetition is the cooperation between competing companies; businesses that engage in both competition and cooperation are said to be in ‘coopetition’. Certain businesses gain an advantage by using a judicious mixture of cooperation with suppliers, customers, and firms producing complementary or related products.
How is this possible? Give me some Examples
On March 17, 2020, Pfizer Inc. (NYSE: PFE) and BioNTech SE (Nasdaq: BNTX) announced a collaboration to jointly develop a COVID-19 vaccine. BioNTech contributed the vaccine candidates, while Pfizer contributed the clinical research and development as well as the manufacturing and distribution capabilities of the company.
Coopetition is a strategic alliance that is particularly common between software and hardware firms — a classic example of coopetition. Often coopetition is more likely to happen in the startup space and in the technology industry: two or more competitors are fighting a larger competitor, and tech companies can integrate to form coopetition against a larger foe. Coopetition in the tech industry is prevalent since it’s common for two competitors to become acquired or merge, forming a stronger entity.
Benefits of Coopetition to Companies
The most common sector that acts in coopetition is the technology industry. Cooperation between competitors allows for hardware and software synergies. Many startups, especially in the technology industry, are competing in a similar market but have unique advantages. Two competitors may have complementary strengths, and a coopetition agreement can be formed to share in common gains. Coopetition between two tech companies can increase the chance of user growth within each company through cross-channel promotion.
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