Co-opetition: Collaboration as a Strategic Advantage
Co-opetition helps you view competition differently. Not every competitor is merely a threat. Sometimes you can actually collaborate in areas where both parties benefit, while continuing to compete in other areas. This creates new opportunities for innovation, market growth, cost savings, and knowledge sharing, but also requires clear agreements and well-defined boundaries.
In this article, you’ll discover what co-opetition means, why organizations choose this approach, and what benefits and risks are involved. You’ll also learn how collaboration between competitors works in practice, with relatable examples and a focus on trust, strategy, and competitively sensitive information. In addition, you can use the downloadable co-opetition canvas to clearly map out the opportunities, risks, partners, agreements, and next steps for yourself. Enjoy reading!
What is co-opetition?
The word co-opetition is a combination of the English words cooperation and competition. Specifically, it describes a situation in which companies compete but also collaborate with one another. That may sound contradictory, but in practice, this is becoming increasingly common.
In co-opetition, organizations collaborate in specific areas where both can benefit. Examples where this often pays off include research and development, production processes, or technology sharing. At the same time, these organizations continue to compete in other areas, such as marketing, sales, and customer acquisition.
The key advantage of co-opetition is that companies can sometimes achieve more together than if they tried to do everything on their own. Collaboration can be particularly beneficial in markets where innovation requires significant time, knowledge, and investment. By combining resources, expertise, or technology, organizations can develop new solutions more quickly and share costs. This creates greater value for both parties.
It is important to understand that co-opetition is quite different from a merger or acquisition. The companies involved remain independent and retain their own objectives. Thus, it is purely a matter of collaboration. This combination is what makes co-opetition unique. Organizations seek a balance between collaborating where it yields benefits and competing where their own market position is paramount.
A well-known example of this is the relationship between the tech companies Apple and Samsung. Both companies have been major competitors in the smartphone market for years. Yet Samsung supplies various components to Apple, such as screens and memory chips. While they compete fiercely with each other in the consumer market, they also collaborate within the supply chain. This clearly illustrates how Co-opetition can work in practice.
Co-opetition is common in many different sectors today. In addition to technology, it can also be seen in the automotive industry, aviation, pharmaceuticals, and the energy sector. This form of collaboration can be particularly attractive when companies face similar challenges or wish to jointly invest in new developments.
Origins of the Theory
Although the term co-opetition was coined much later, the idea behind it has existed for much longer. In many different periods throughout history, competitors have collaborated when it benefited both parties.
A well-known example of this comes from World War II. Various American automakers, such as Ford, General Motors, and Chrysler, were direct competitors before the war and did not share information with one another.
During the war, however, they shifted a large portion of their production to military vehicles and aircraft. In doing so, they shared knowledge and collaborated on production capacity. After the war ended, the companies returned to their normal activities and resumed competing with one another.
Even though this wasn’t yet called “Co-opetition” at the time, this example clearly shows that when there is a significant advantage to be gained through collaboration, companies are inclined to choose that path. Ultimately, it all comes down to self-interest.
The term “Co-opetition” ultimately gained popularity through the 1996 book Co-opetition by Adam Brandenburger and Barry Nalebuff. In this book, they combine insights from game theory with strategic management. According to them, companies do not have to view each other exclusively as competitors. In some situations, cooperation can make both parties stronger and create more value than if each company operated completely independently.
Finally, Co-opetition became increasingly important in the 1990s. Globalization exposed companies to greater international competition. Innovation costs also rose, and technological development accelerated. Digitalization, too, led companies to rely more frequently on shared systems and networks, making collaboration with competitors increasingly common.
Why do organizations choose co-opetition?
Organizations do not simply choose to collaborate with a competitor. It occurs primarily in situations where it is difficult to achieve certain goals on their own or when collaboration is more efficient than working independently.
In many sectors, innovation plays a major role in this. Developing new technology often requires a great deal of time, expertise, and money. By collaborating, companies can share these costs and develop new and better solutions more quickly. This is evident, for example, in the automotive industry, where competitors are collaborating on electric vehicles and battery technology.
Costs and risks also play an important role. Large-scale projects, such as drug development or chip production, require significant investments and entail risks. By collaborating, these costs are shared, and the risk per organization is reduced. In addition, collaboration can lead to more efficient processes because knowledge and resources are shared.
Another reason is access to new markets. When a company wants to expand into a new region or sector, collaborating with a competitor already active there can help achieve this more quickly. Consider, for example, access to distribution networks or local market knowledge.
Finally, co-opetition is also used to develop joint standards. In sectors such as technology and telecommunications, it is important that systems are compatible with one another. By reaching agreements on this, greater clarity is created for customers, while companies continue to compete on their own products and services.
How does co-opetition work in practice?
In practice, co-opetition primarily involves collaboration on specific areas, while companies remain competitors in other areas. It is therefore not about broad collaboration, but rather about targeted agreements from which both parties benefit.
This usually takes place behind the scenes. For example, companies collaborate on technology, research, or production, while continuing to operate independently in the marketplace. Areas such as marketing, pricing, and customer engagement often remain completely separate. This allows organizations to collaborate without weakening their own competitive position.
It is important, however, to establish clear agreements about what is and isn’t shared. This prevents sensitive information from falling into the wrong hands and clarifies who owns new knowledge or innovations. In many cases, co-opetition is temporary or linked to a specific project. Once the shared goal is achieved, the collaboration ends or changes, while competition continues as usual. As mentioned earlier in the example given about the car brands in the United States during World War II.
A Real-World Example of co-opetition
A clear and very well-known example of co-opetition is the relationship between Apple and Samsung. At first glance, these are two companies that are in direct competition in the smartphone market. Yet they collaborate behind the scenes, as Samsung supplies various components such as screens and memory chips. This is because Samsung excels at manufacturing these components and benefits from significant economies of scale.
For Samsung, this generates significant and stable revenue, as Apple is one of the largest customers in the world. Additionally, it contributes to the further development of production processes and technology within the company.
Apple also benefits from this because it can focus on design, software, and user experience, while sourcing its hardware from a specialized supplier.
Despite this collaboration, both companies remain direct competitors. They compete for customers, innovation, and market share, which demonstrates that Co-opetition always involves a balance between cooperation and competition.
What is the difference between co-opetition, collaboration, and a strategic alliance?
Co-opetition resembles both ordinary collaboration and a strategic alliance. Yet there is one key difference. In co-opetition, organizations work together while simultaneously remaining competitors. That combination is what makes the concept unique.
In ordinary collaboration, organizations usually work together because they complement each other. They focus on a shared goal without directly competing for the same customer or market position. Think of a supplier collaborating with a customer, or two organizations sharing knowledge on a social issue.
A strategic alliance often goes a step further. In such cases, organizations make clear agreements regarding a joint project, market, technology, or product development. The collaboration is usually formally established. However, the parties do not always have to be direct competitors.
In co-opetition, however, competition is very much present. For example, companies collaborate on research, production, technology, or standards, but continue to compete on price, brand, customers, marketing, or market share. This creates a tension. The collaboration must deliver value, but it must not weaken the parties’ own competitive positions.
A simple distinction is therefore:
- Collaboration: organizations work together toward a shared goal.
- Strategic alliance: organizations formally establish a partnership to become stronger together.
- Co-opetition: competitors collaborate in one area but remain rivals in others.
This distinction is important in practice. In co-opetition, organizations must think more carefully about what they do and do not share. In particular, information about customers, prices, strategy, and future plans must be well protected. Without clear boundaries, collaboration with a competitor can quickly lead to mistrust, conflicts, or legal risks.
Advantages and Risks of Co-opetition
Co-opetition entails both benefits and risks for organizations. The key points are briefly explained below.
Benefits
Accelerating Innovation
A key benefit is that innovation often proceeds more quickly. By sharing knowledge and resources, companies can develop new products or technologies faster than if they were to do everything on their own. This is particularly evident in sectors where development requires significant time and money.
Reducing Costs and Risks
Costs can also be significantly reduced. Large projects, such as new technology or research, are jointly funded. This spreads the risk across multiple companies. If something fails, the impact on each individual company is therefore smaller. Furthermore, collaboration often leads to economies of scale, making processes more efficient and less expensive.
Access to New Markets
Another advantage is that companies can more easily enter new markets or areas of expertise. By collaborating with a partner that already has experience or a strong network in a particular market, companies can grow and expand more quickly.
Disadvantages and Risks
Sharing Information with Competitors
There are also risks associated with co-opetition. One key issue is information sharing. Companies must collaborate with a competitor, which means that sensitive knowledge or strategies could fall into the wrong hands if agreements are not properly documented.
Legal Limits
In co-opetition, organizations must also be mindful of legal boundaries. Collaborating with a competitor must not lead to price-fixing, market division, or the sharing of commercial information that restricts fair competition. Therefore, it is wise to clearly define in advance what information will and will not be shared.
Tension Between Collaboration and Competition
Tension can also arise between collaboration and competition. This is because companies each have their own interests, and these are not always aligned. This can lead to mistrust or conflicts, especially if one party benefits more from the collaboration than the other.
Trust and Agreements
Co-opetition requires a great deal of trust and clear agreements. If these are lacking, the collaboration can quickly come under pressure and potentially fail.
When does Co-opetition work well?
Not every collaboration with a competitor automatically yields benefits. Research by Ritala (2012) shows that co-opetition can be particularly successful when collaboration contributes to innovation and when organizations continue to closely monitor their own market position. This aligns with the core of Co-opetition: creating value together while remaining focused on one’s own interests.
Co-opetition works particularly well when companies truly complement each other. This is often the case when organizations each have different strengths—for example, one in innovation or technology and the other in production or distribution. In such situations, collaboration yields greater results than when both parties try to do everything on their own, because knowledge and resources reinforce one another.
It also often works well in rapidly changing markets where innovation is key. Companies can then respond more quickly to new developments without having to figure everything out on their own. However, it is important that the collaboration is clearly defined and that there is sufficient trust. Without clear agreements and stability, Co-opetition quickly loses its advantage.
Co-opetition Canvas
The Co-opetition Canvas helps you systematically explore collaboration with a competitor. Co-opetition can yield significant benefits, such as faster innovation, shared costs, and access to new knowledge or markets. At the same time, this strategy requires careful decision-making, as collaboration and competition coexist side by side.
With this canvas, you can map out, step by step, where the common interest lies, which areas are suitable for collaboration, and which information must remain protected. The canvas also helps clarify risks, legal boundaries, agreements, and evaluation milestones.
Use the Co-opetition Canvas as a practical tool for strategy, innovation, partnerships, or market research. This way, you can prevent collaboration with a competitor from remaining too vague and gain a firmer foundation for making an informed decision. Download the canvas and discover whether co-opetition makes strategic sense in your situation.
Download the Co-opetition Canvas template
For members only | Get instant access to this Co-opetition Canvas plus unlimited access to 1,200+ expert articles and tools. Explore Membership Options
Summary
Co-opetition is a strategy in which companies compete and collaborate at the same time. Organizations collaborate in areas such as innovation, production, or technology, while remaining competitors in other areas. This occurs primarily in sectors where innovation requires significant time and money, as collaboration can lead to faster development, lower costs, and access to new markets.
The concept emerged as companies have become increasingly dependent on one another in ever more complex and fast-paced markets. Well-known examples show that this is common in practice, for instance among large technology companies.
However, co-opetition also carries risks, such as the sharing of sensitive information and potential tensions between companies with differing interests. That is why clear agreements and trust are important. When Co-opetition is applied effectively, it can lead to innovation, growth, and a stronger market position.
Recommended books and publications on co-opetition
Co-opetition helps us better understand collaboration between competitors. Organizations do not merely compete for market share, customers, or position; they also collaborate when doing so creates shared value. Examples include innovation, standardization, platform development, knowledge sharing, or expanding a market. The books and publications listed below provide further insight into co-opetition, strategic alliances, game theory, competitive strategy, value creation, and collaboration between rivals.
- Bengtsson, M., & Kock, S. (2014). Co-opetition: Quo vadis? Past accomplishments and future challenges. Industrial Marketing Management, 43(2), 180-188. → Bengtsson and Kock provide an overview of the development of Co-opetition as a field of research. The source is relevant because Co-opetition is not just about cooperation or competition, but rather about the tension between the two at the same time.
- Brandenburger, A. M., & Nalebuff, B. J. (1996). Co-opetition. New York, NY: Doubleday. → This is one of the best-known foundational works on Co-opetition. Brandenburger and Nalebuff demonstrate how organizations can use game theory to view competitors, customers, suppliers, and complementors in a different light. The book helps readers understand why collaborating with competitors is sometimes strategically wise.
- Contractor, F. J., & Lorange, P. (Eds.). (2002). Cooperative Strategies and Alliances. Amsterdam, Netherlands: Pergamon. → This book provides a broad foundation for cooperative strategies and alliances. It is relevant to co-opetition because collaboration between competitors often requires clear agreements, shared interests, risk management, and trust.
- Dagnino, G. B., & Padula, G. (2002). Co-opetition Strategy: A New Kind of Interfirm Dynamics for Value Creation. Paper presented at the European Academy of Management Second Annual Conference, Stockholm, Sweden. → Dagnino and Padula describe co-opetition as a new form of dynamics between organizations. The publication is useful because it demonstrates that companies can simultaneously create value with competitors and then still compete for a share of that value.
- Gnyawali, D. R., & Park, B.-J. R. (2009). Co-opetition and technological innovation in small and medium-sized enterprises: A multilevel conceptual model. Journal of Small Business Management, 47(3), 308–330. → Gnyawali and Park link Co-opetition to technological innovation in small and medium-sized enterprises. This aligns well with the article, as collaboration with competitors can be particularly valuable when companies lack sufficient resources, knowledge, or scale on their own.
- Gnyawali, D. R., & Park, B.-J. R. (2011). Co-opetition between giants: Collaboration with competitors for technological innovation. Research Policy, 40(5), 650-663. → This article examines collaboration between major competitors in technological innovation. The source is strong because it demonstrates that even dominant firms sometimes need competitors to develop new standards, technologies, or markets more quickly.
- Gulati, R. (1998). Alliances and networks. Strategic Management Journal, 19(4), 293-317. → Gulati demonstrates how strategic alliances and networks emerge and function. This is relevant to Co-opetition because collaboration between competitors often takes place within broader networks, in which trust, reputation, and prior collaboration play a major role.
- Lado, A. A., Boyd, N. G., & Hanlon, S. C. (1997). Competition, cooperation, and the search for economic rents: A syncretic model. Academy of Management Review, 22(1), 110-141. → Lado, Boyd, and Hanlon demonstrate that competition and cooperation are not necessarily mutually exclusive. Their model can be used to explain why organizations sometimes perform better when they combine both logics.
- Ritala, P. (2012). Co-opetition Strategy: When Is It Successful? Empirical Evidence on Innovation and Market Performance. British Journal of Management, 23(3), 307-324. → Ritala examines when Co-opetition can be successful. The publication is valuable because not every collaboration with competitors automatically yields benefits. Success depends on context, innovation capacity, market position, and how the collaboration is structured.
- Yami, S., Castaldo, S., Dagnino, G. B., & Le Roy, F. (Eds.). (2010). Co-opetition: Winning strategies for the 21st century. Cheltenham, England: Edward Elgar. → This book brings together various perspectives on co-opetition. It serves as a valuable in-depth resource because it illustrates how companies combine cooperation and competition across different sectors, markets, and strategic situations.
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Original publication date: June 26, 2026 | Last update: July 1, 2026
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