Thursday, January 25, 2018

Word of the Day: coopetition

Word of the Day WhatIs.com
Daily updates on the latest technology terms |January 25, 2018
coopetition

Coopetition is a business strategy that uses game theory to help organizations understand when it is better for competitors to work together. The strategy involves the use of mathematical models that help participants visualize when cooperation among competitors will benefit all players and help grow the market.

The coopetition model starts out with a diagramming process called the value net, which is represented as a diamond with four defined player designations at the corners. The players are customers, suppliers, competitors and complementors (competitors whose products add value).

The goal of coopetition is to move the players from a zero-sum game, in which the winner takes all and the loser is left empty-handed, to a plus-sum game, a scenario in which the end result is more profitable when the competitors work together. An important part of the game is to learn which variables will influence the players to either compete or cooperate and when it is to a player's advantage not to cooperate.

Coopetition (also spelled co-opetition) is a portmanteau, combining the words cooperation and competition. The principles and practices of coopetition are credited to Harvard and Yale business professors, Adam M. Brandenburger and Barry J. Nalebuff. Competitive businesses that also cooperate when it is to their advantage are said to be in coopetition.

Quote of the Day

"In a digital marketplace, it's the companies that play nice with others, sharing data and technology, that respond more quickly and effectively to customers' fast-changing needs." - Jason Sparapani

 

Trending Terms

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Writing for Business

Google Wave was expected to enable a ________ in business collaboration, but it didn't play out that way.
a. C change
b. sea change
Answer

 

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