Co-opetition

Co-opetition

As stated in the previous chapter, co-opetition is the concept of simultaneously engaging in competition and co-operation within your market. This can potentially enhance the broader market for everyone.

Wikipedia defines co-opetition as “the concept of limited cooperation between competitors, usually arising in rapidly changing industries where companies are compelled to work together.”

“Examples of co-opetition include Apple and Microsoft building closer ties on software development, and the cooperation between Peugeot and Toyota to develop a new city car for Europe in 2005.”

Small companies can more readily benefit from co-opetition since the deals can be simple, and small partners can grow faster than large ones due to lethargy and bureaucracy created by size.

As long as you disclose anything that could be perceived as a conflict of interest to your partners in advance, and cover yourself properly with a nondisclosure agreement, then you can and should safely attempt to engage in co-opetition, including merger and acquisition-related activities.

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