Coopetition, also called co-opetition or co-competition, is an amalgamation of words “cooperation” and “competition,” stating two or more competing firms can work together at times for mutual gains. In other words, when rival firms join hands to eliminate other competition and benefit mutually from the relationship, it’s referred to as coopetition. For example, Samsung manufacturing displays, memory chips, etc., for Apple, despite the two companies being nemeses within the smartphone space is coopetition.
Such alliances are typically limited in scope and duration or could be project-based. The coopetiting firms cannot overly interfere with each other’s regular affairs, and the indulgence or interaction is only restricted to the specific project. Coopetition exists because almost every business is interdependent and collective action or digging into other firm’s strategic capabilities can fetch more mutual benefits.