is a neologism
coined to describe cooperative competition
. Co-opetition occurs when companies work together for parts of their business where they do not believe they have competitive advantage, and where they believe they can share common costs. For instance, the cooperation between Peugeot
on shared components for a new city car for Europe
. In this case, companies will save money on shared costs, while remaining fiercely competitive in other areas. For co-opetition to work, companies need to very clearly define where they are working together, and where they are competitng.
The word coopetition has been re-coined several times:
The word only became widely used in the 1990's.
- Adam Brandenburger, Barry Nalebuff 1996 Co-Opetition : A Revolution Mindset That Combines Competition and Cooperation ISBN 0-385-47950-6
- Cartels are well-known examples of companies working together in order to limit competition.