DEFINITION of 'Coopetition'

Cooperation between competing companies. Businesses that engage in both competition and cooperation are said to be in coopetition. Certain businesses gain an advantage by using a judicious mixture of cooperation with suppliers, customers and firms producing complementary or related products.

BREAKING DOWN 'Coopetition'

Coopetition is thought to be a good business tactic between two businesses that can lead to expansion of the market and the formation of new business relationships. Coopetition is a form of strategic alliance and is common particularly in the computer industry between software and hardware firms. In this field, coopetition means settling on standards and developing products that compete with each other using those same standards.

  1. Perfect Competition

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  2. Joint Venture - JV

    A business arrangement in which two or more parties agree to ...
  3. Imperfect Competition

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  4. Loss Leader Strategy

    A business strategy in which a business offers a product or service ...
  5. Strategic Alliance

    An arrangement between two companies that have decided to share ...
  6. Efficiency

    A level of performance that describes a process that uses the ...
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