Coopetition
Encyclopedia
Coopetition or Co-opetition (sometimes spelled "coopertition" or "co-opertition") is a neologism coined to describe cooperative competition
.
Basic principles of co-opetitive structures have been described in game theory
, a scientific field that received more attention with the book Theory of Games and Economic Behavior
in 1944 and the works of John Forbes Nash
on Non-cooperative game
s.
Coopetition 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 arrangement between PSA Peugeot Citroën
and Toyota to share components for a new city car - simultaneously sold as the Peugeot 107
, the Toyota Aygo
, and the Citroën C1
- qualifies as coopetition. In this case, companies save money on shared costs while remaining fiercely competitive in other areas.
Competition
Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
.
Basic principles of co-opetitive structures have been described in game theory
Game theory
Game theory is a mathematical method for analyzing calculated circumstances, such as in games, where a person’s success is based upon the choices of others...
, a scientific field that received more attention with the book Theory of Games and Economic Behavior
Theory of Games and Economic Behavior
Theory of Games and Economic Behavior, published in 1944 by Princeton University Press, is a book by mathematician John von Neumann and economist Oskar Morgenstern which is considered the groundbreaking text that created the interdisciplinary research field of game theory...
in 1944 and the works of John Forbes Nash
John Forbes Nash
John Forbes Nash, Jr. is an American mathematician whose works in game theory, differential geometry, and partial differential equations have provided insight into the forces that govern chance and events inside complex systems in daily life...
on Non-cooperative game
Non-cooperative game
In game theory, a non-cooperative game is one in which players make decisions independently. Thus, while they may be able to cooperate, any cooperation must be self-enforcing....
s.
Coopetition 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 arrangement between PSA Peugeot Citroën
PSA Peugeot Citroën
PSA Peugeot Citroën is a French manufacturer of automobiles and motorcycles sold under the Peugeot and Citroën marques. Headquartered in the 16th arrondissement of Paris, PSA is the second largest automaker based in Europe and the number eight in the world.-History:In December 1974 Peugeot S.A....
and Toyota to share components for a new city car - simultaneously sold as the Peugeot 107
Peugeot 107
The Peugeot 107 is a city car produced by French automaker Peugeot since mid 2005.The 107 was developed by the B-Zero project of PSA Peugeot Citroën in a joint-venture with Toyota; the Citroën C1 and Toyota Aygo are badge engineered versions of the same car, although the Aygo has more detail...
, the Toyota Aygo
Toyota Aygo
The Toyota Aygo is a city car sold by Toyota in Europe since 2005. All Aygos are built at the new factory of the Toyota Peugeot Citroën Automobile Czech joint venture in Kolin, Czech Republic. The Aygo was first displayed at the 2005 Salon de l'Automobile de Genève...
, and the Citroën C1
Citroën C1
The Citroën C1 is a city car produced by the French manufacturer Citroën since 2005.The C1 was developed as part of the B-Zero project by PSA Peugeot Citroën in a joint-venture with Toyota. The Peugeot 107 is identical to the C1 other than the front bumper and front and rear lights, while the...
- qualifies as coopetition. In this case, companies save money on shared costs while remaining fiercely competitive in other areas.
History
The word coopetition and its variants have been re-coined several times:- In 1913 by the Sealshipt Oyster System
- In 1937 by Rockwell D. HuntRockwell D. HuntRockwell Dennis Hunt was an eminent California historian, a professor at the University of Southern California and the University of the Pacific, and prolific author. He was named Mr. California by Governor Goodwin Knight in 1954....
- Around 1975 by Doug Chamberlin in a class at Adrian College, responding to an instructor's request for an appropriate new word with which to refer to "conflict over how to divide up the benefits produced by cooperation." Incorporated in 1981 college textbook Thinking About Politics: American Government in Associational Perspective (N.Y: D. Van Nostrand, 1981), chapter 9, p. 257. Text is available on-line .
- Around 1992 by Raymond Noorda to characterize NovellNovellNovell, Inc. is a multinational software and services company. It is a wholly owned subsidiary of The Attachmate Group. It specializes in network operating systems, such as Novell NetWare; systems management solutions, such as Novell ZENworks; and collaboration solutions, such as Novell Groupwise...
's business strategy. - In 2000, FIRST Robotics had a competition gameCo-Opertition FIRST-Field:The playing field was a carpeted, rectangular area with two high goals located midfield, one goal for each alliance. There is a clearance bar under each goal. Between the goals is an wide ramp with a clearance bar, which robots may hang on to score points...
titled Co-Opertition FIRST. In 2009, FIRST cofounder Dean KamenDean KamenDean L. Kamen is an American entrepreneur and inventor from New Hampshire.Born in Rockville Centre, New York, he attended Worcester Polytechnic Institute, but dropped out before graduating after five years of private advanced research for drug infusion pump AutoSyringe...
received a patent titled "Method for Creating Coopertition" (spelled as one word, with no hyphen), which involves giving FIRST Robotics teams some points scored by other teams, to encourage cooperation even as they compete.. US FIRST now claims a trademark on the term on its Web site. - In the mid-2000's, "coopetition" began to be used by Darrell WaltripDarrell WaltripDarrell Lee Waltrip is a 3-time NASCAR Cup Series champion , 3-time runner-up , winner of the 1989 Daytona 500 and 5-time winner of the prestigeous Coca-Cola 600 ,...
to describe the phenomenon of drivers cooperating at various phases of a race at "high speed" tracks such as Daytona and Telledaga where cooperative aerodynamic drafting is critical to a driver's ability to advance through the field. The ultimate goal for each driver, however, is to use the strategy to win.
See also
- Competitive altruismCompetitive altruismCompetitive altruism is a possible mechanism for the persistence of cooperative behaviors, specifically those that are performed unconditionally. The theory of reciprocal altruism can be used to explain behaviors that are performed by a donor who receives some sort of benefit in the future...
- FrenemyFrenemy"Frenemy" is a portmanteau of "friend" and "enemy" that can refer to either an enemy disguised as a friend or to a partner who is simultaneously a competitor and rival. The term is used to describe personal, geopolitical, and commercial relationships both among individuals and groups or institutions...
- CartelCartelA cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
s are well-known examples of companies working together in order to limit competition. - NegarchyNegarchyNegarchy was a term coined by Daniel Deudney to mean a form of status quo maintained by the inter-relations of the power structure and authority that modern states hold in relation to each other which negate each other due to their respective affluence...
- Co-Opertition FIRSTCo-Opertition FIRST-Field:The playing field was a carpeted, rectangular area with two high goals located midfield, one goal for each alliance. There is a clearance bar under each goal. Between the goals is an wide ramp with a clearance bar, which robots may hang on to score points...
- FIRST#Philosophy
External links
- Strategic co-opetition: The value of relationships in the networked economy, A perspective from IBM
- The website to accompany the book Co-opetition by Adam M Brandenburger and Barry J Nalebuff
- Channel Register: The ugly truth about coopetition
- Coopetition in the new economy: Collaboration Among Competitors
- FIRST Values: Coopertition
- 2010 FIRST Robotics Competition:Coopertition Award
- Patent 7,507,169: Method for Creating Coopertition