Co-opetition
proposedAlso known as: The Value Net · Game Theory for Business
Compete and cooperate at the same time: grow the pie with complementors and rivals, then compete to slice it.
Applies game theory to strategy through the Value Net of customers, suppliers, competitors, and complementors. It shows that rivals can be complementors in creating a larger market, so the move is to cooperate where it expands total value and compete where value is divided.
Core concepts
Value NetComplementorsExpand-the-Pie vs Divide-the-PieChanging the Game
Best when
- A rival could help you grow the whole market
- Industry-standard or infrastructure problems are bigger than any one firm
Watch-outs
- Cooperating with competitors carries antitrust and trust risks that must be managed explicitly