It might sound crazy, but a new concept picking up steam is ‘coopetition’, which indicates collaboration between business competitors on a shared project or idea. Without a doubt, there are obvious concerns such as backstabbing, sincerity, and potential withholding of resources to gain an advantage. However, if both parties act in good faith, there are clear benefits to be gained from this interaction.
A study in Poland demonstrated that not only is there a 50% chance of mutually reducing company costs, but there is also a greater than 50% chance of greater access to resources. There is also an increase of 35% in the certainty that benefits can be gained in the form of market access. Furthermore, companies that collaborate have over 40% chance of an increase in the company’s value. Advantages such as these are incredibly attractive to businesses, and thus several companies work together for a common goal.
An example of coopetition is between two top video platforms, YouTube and Vimeo. It was revealed by the CEO of Vimeo, Anjali Sud that they joined forces with YouTube as part of a new business strategy to allow Vimeo content producers to publish their work on YouTube, as well as other video platforms. As a result, this new strategy became one of the biggest value-adds in Vimeo’s product. Another noteworthy example is between Apple and Samsung, two long-time rivals in the smartphone industry. Despite competing with each other, Samsung continues to be the main supplier of smartphone screens for Apple. With top businesses in the world engaging in coopetition, it seems likely that this new concept will be a key success factor for businesses in the long run.