THE RULES RIVALS ARE WORKING TOGETHER

OF MORE THAN EVER BEFORE. HERE’S HOW

CO-OPETITION TO THINK THROUGH THE RISKS AND
REWARDS.
BY
 ADAM BRANDENBURGER
 BARRY NALEBUFF

PRESENTED BY: QASIM SARFARAZ

Published in Magazine Jan-Feb 2021 164th JUNIOR MANAGEMENT COURSE
ADAM BRANDENBURGER
 Professor, Stern School of Business, New York University.
 Professor at Harvard Business School.
 Area of Research:
 Game + Information Theory.
 Business Strategy.
 Published 03 Books and Multiple Research Articles.
Recent Articles (Jun-21)
1. “Symmetry and the Sixth Force: The Essential Role of
Complements”.
2. “Coordination via Delay: Theory and Experiment”.
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BARRY NALEBUFF

 American Businessman, Business Theorist, and Author. 

 Professor of Economics and Management, Yale School of Management
 Chairman and Co-founder of Honest Tea Company.
 Area of Research:
 Game Theory.
 Business Strategy.
 Published 07 Books and Multiple Research Articles.
 Recent Articles (Jan-21)
“The Rules of Coopitition” by Adam BrandenBurger & Barry Nalebuff
2
ABOUT JOURNAL

Journal Title: Harvard Business Review

Publisher: Harvard Business School Publishing

Highest Impact Factor (IF) (2021): 6.87

Lowest Impact Factor (IF): 1.269

Overall Ranking (2020-21) : 5788

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CONTENTS

 Introduction
 What is likely to happen if you Don’t Cooperate?

 Categories of Co-operation for Deal

 Frame Work for Action

 Agreement Structure for Coopetition

 Conclusion

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INTRODUCTION
 Mixture of Competition and Co-operation.
 Collaborate in areas where parties don’t believe they have
competitive advantage and believe they can share common
costs.
 Relationships in Business don’t have to be win-lose.
Sometimes both parties can win.
 Example:
 Joint Mission for landing on Moon.
 Motives of Co-opetition
 Cost Saving
 Avoid duplication of effort 55
WHAT IS LIKELY TO HAPPEN IF YOU DON’T
COOPERATE?
 If a Co-operative Opportunity is on the table but You don’t agree to
the Deal then Someone else will take your place in it.
 Examples:

1.

2.

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CATEGORIES OF CO-OPERATION FOR DEAL
 Neither Party has a special Sauce (Specialty) at Risk, but the parties’
combined ingredients create value.
 Example:

 Both parties have a special sauce, and sharing puts them both ahead of
their common rivals.
 Example: recipe

77
CONT…….

 One party has a strong competitive advantage, and sharing only

heightens it; even so, less-powerful parties are willing to cooperate.
 Example:

 One party shares its secret sauce to reach another’s customer base,
even though doing so carries risks for both parties.
 Example:
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  Start by analyzing the circumstances if NOT cooperated.

 Affect of Decision on Industry dynamics.

FRAME
 Cooperate without losing your current advantage.
WORK
FOR  Sign an Agreement.
ACTION  Establish Scope and Control

 Dividing The Pie

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AGREEMENT STRUCTURE FOR COOPETITION
 ESTABLISHING SCOPE AND CONTROL
 Define Extent of Co-operation.
 Who will be In Charge?
 How to unwind the agreement?
 DIVIDING THE PIE
 Cooperation is an overall win-win but splitting the gains is a
Zero-sum game.
 The solution is relatively straightforward when there’s an even
trade but harder if the trade is uneven.
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CONCLUSION

 Provides a better way to work and succeed together.

 Increases interdependence b/w global firms, promotes collective
action and strategic flexibility.

 Coopetition may end up being a strategy of last resort even in cases

where it should be a first resort.

 Co-opetition requires mental flexibility. The firms who develop it

can gain an important edge.

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Thank You
For Your Attention
ANY
QUESTION