Coopetition Concept
Coopetition is a recent creation concept, formed due to the junction of the words competition and cooperation, and means to work together with the competitors in order to beneficiate from their capacities and distinctive characteristics in matters of investigation & development, production, distribution, among others. This theme has been assuming growing importance, especially driven by the stronger effects of the globalization of economies’ process, forcing the companies to take action in a wider and more competitive market. Many companies, recognizing the need to simultaneously cooperate and compete, begin to face the competitors which produce and sell similar or complementary products and services as potential business partners.
The coopetition advantages are vast and derive essentially from the exploitation of various types of synergies in some parts of the process, emphasizing the following:
- Production capacity increase;
- Investment effort reduction;
- Bigger flexibility;
- Higher speed in technological innovations;
- Easier access to new markets.
There are also, however, some risk, among which:
- Clear definition difficulties of rights and obligations;
- Lack of spirit and cooperation;
- Risk of know-how exposal.
