COOPETITION: A HANDSHAKE WITH THE “ENEMY”! Susan Nelson Do you ever find yourself instinctively viewing your competitors as enemies you must defeat? You spend hours thinking about what they are up to, carefully observing their every move. The feeling of anxiety creeps in, urging you to act swiftly, to come up with a better deal or superior product. There’s that innate drive to outdo them at all costs. Competition has long been the driving force of businesses. Unfortunately, throughout history, this term has been strongly associated with adversity. "A competitor must be fought against because they represent a threat in a business ecosystem, akin to a jungle where only the strongest survive." Therefore, companies would spare no effort in eliminating the competition and dominating the market. However, the arrival of the 21st century has ushered in many unexpected developments. The mentality of "every man for himself" that once characterized businesses has lost its allure, giving way to more collaborative models. Among these, "coopetition," a neologism that combines two seemingly contradictory forces— cooperation and competition—is now slowly gaining ground. While this new concept, popularized in 1996 by Nalebuff and Brandenburger, may puzzle many business leaders, it carries far greater potential than we might think! Coopetition often manifests as an alliance between competing businesses that enables innovation and accelerates the development of each one, sometimes even of an entire industry. Successive financial crises, volatile business environments, and evolving consumer needs are challenging businesses and forcing them to constantly reinvent themselves. Forward-thinking companies have now decided that it is preferable to seek out opportunities for collaboration rather than engaging in an intense battle against increasingly formidable adversaries of all sizes and backgrounds. Joining forces with a direct competitor can lead to better visibility and establishing yourselves as leaders in your industry, far ahead of others. In 2003, Sony and Samsung created the joint venture S-LCD to develop a new generation of LCD televisions. Sony, as the leader in the television market, needed Samsung's flat-screen technology. This alliance enabled Samsung to establish a position in this market. In 2006, Samsung and Sony became the top two LCD TV manufacturers. Beyond the mutual development and competitive advantage that an alliance provides to partner companies, coopetition can also aim to help competitors reduce their operating costs. Coopetition is not only reserved for the big players! Small businesses can counter the fragility of their economic survival and identity by embracing this tactic. Collaboration strategies such as pooling resources, sharing knowledge, and leveraging combined strengths can enable two small businesses to shift from playing defense with price reduction, to an "offensive" joint strategy aimed at creating more value by venturing into new markets, and ultimately securing a larger market share. Coopetition could well become the new weapon for ‘Davids’ against the ‘Goliaths’ in the industry. Finding a partner in your competitor has numerous benefits. However, many companies still struggle with understanding how to implement this strategy. Looking out for competitors whose products, target audience, and distribution systems complement yours could be a good first step to collaboration. The next phase would involve identifying untapped market niches or joint product or service development opportunities and assessing the potential benefits for each organisation. Trust, exchange of information, and establishing a fair profit-sharing mechanism are key elements of successful cooperation. Collaborative solutions should also consider each partner's individuality and expectations. When done properly, coopetition provides the opportunity to push the boundaries of innovation and perform far better than you would in a cutthroat business environment. It is crucial that companies avoid succumbing to "competitive myopia." The interdependence of all players in an industry must be understood and acknowledged. It is time to see collaboration, partnerships, and coopetition, beyond being mere economic concepts, but game-changing strategies that should be adopted by all businesses. As mentioned by Edgar Morin in his book "La Fraternité, pourquoi?" :"Les espèces les mieux adaptées sont, non les plus agressives, mais les plus solidaires" -The best-adapted species are not the most aggressive, but the most cooperative.
