Co-opetition

• The new way of doing business

 Coopetition
• "Business is War." The traditional
language of business certainly
makes it sound that way:
outsmarting the competition,
capturing market share, making a
killing, fighting brands, beating up
suppliers, locking up customers.(1)
Under business-as-war, there are
the victors and the vanquished.
 Coopetition

• It is not enough to succeed. Others

must fail.
 Coopetition

• You don't have to blow out the

other fellow's light to let your own
shine.
 Coopetition

• "Business is Peace"?
 Coopetition

• A New Mindset

• creating a pie and competition when it comes

Business is cooperation when it comes to

to dividing it up.

• In other words, business is War and Peace.

• followed by peace followed by war. It's

But it's not Tolstoy--endless cycles of war

simultaneously war and peace.

 Coopetition
• As Ray Noorda, founder of the
networking software company
Novell, explains: "You have to
compete and cooperate at the
same time."
• The combination makes for a more
dynamic relationship than the
words "competition" and
"cooperation" suggest individually.
 Coopetition
• Game Theory
• Game theory has the potential to
revolutionize the way people think
about business.

• This is because the fundamental ideas

of game theory are so powerful, and
because business offers so many
opportunities for applying them.
• Game theory is a branch of applied
mathematics that is used in the
social sciences, most notably in
economics, as well as in biology
(most notably evolutionary biology
and ecology), engineering, political
science, international relations,
computer science, and philosophy.
• Game theory attempts to mathematically
capture behavior in strategic situations, in
which an individual's success in making choices
depends on the choices of others.

• While initially developed to analyze

competitions in which one individual does
better at another's expense (zero sum games),
it has been expanded to treat a wide class of
interactions, which are classified according to
several criteria.
• The field of game theory came into
being with the 1944 book Theory
of Games and Economic Behavior
by John von Neumann and Oskar
Morgenstern.
• Battle of the Sexes
• If you put α and your pair put β, then you will get grade A, and your pair grade C.

• if both you and your pair put α, then you both will get grade B-.

• if you put β and your pair puts α, then you will get grade C, and your pair grade A.

• if both you and your pair put β, then you will both get grade B+."

• The possible choices, α or β, are called `strategies'. The grades for example, (A,C)
are `outcomes'. We can record such information as follows:

if both you and your pair put Partner

, then you will both get grade B+."
α β

α
B-, B- A,C
Me Outcome Matrix
β
C, A B+,
B+
• This is where coopetition comes in
• If two businesses decide to co-
operate, then the outcome could
be B+ for both.
• But if both stick to their stand, the
outcome is B- to both.
• Wipro, Infosys Show Way To Co-
opetition
• Apple is buying Quattro Wireless
• Microsoft invested $150 million in
Apple
• Microsoft and Yahoo