I came across the concept of coopetition through a keynote speech delivered many years ago at the launch of a mobile payment systems product. At that time in our country, it was one of the first collaborations between a banking institution and a mobile network operator.

In those days, it was generally felt that the mobile network operators were threatening the dominance that the banking institutions had in the payments systems market.

The keynote speech made me realise that in business, there is scope for entities that are ordinarily in competition with each other to create mutual value by identifying areas of collaboration while maintaining their respective competitive edge.

Coopetition refers to: “a synthesis of cooperation and competition “

Whereas there are strategies such as the “blue ocean” strategy which advocates the creation of new markets where dominance can be enjoyed by an entity until that market is also saturated, coopetition entails the co-existence of entities in one market while leveraging on each other’s strengths and resources as well as sharing of risks and costs for mutual benefit.

In my view, it is important that organisations take time to explore the world of coopetition by building strategic alliances that derive mutual benefit. This requires deep introspection, alignment of purpose, analysis as well an attitude that favours the best interests of the entities for the present and foreseeable future.

The concept invites innovation and efficiency through targeted collaboration which can enhance market positions of entities. Accepting that dominance in markets is now becoming more and more short lived, is a resounding wake up call for organisations to have robust plans towards their sustainability.

I would be grateful to hear some practical experiences from colleagues so that we can enrich our knowledge!

Let’s share!