- Grundlagen
- By Roberto Ki
Cooperative Strategy: Definition, Types & Co-opetition
tl;dr
- A cooperative strategy is a strategic approach where companies deliberately work together — including with competitors — to achieve mutual advantages that none could achieve alone.
- Without a validation-driven cooperative strategy — without systematically testing whether the partner brings the right capabilities and interests are compatible — alliances fail due to cultural conflicts, knowledge leakage, or unclear goals.
- Cooperative strategies complement classical competitive strategy: instead of only asking “How do we compete?” the cooperative strategy asks “With whom can we grow the total market?”
What Is a Cooperative Strategy?
A cooperative strategy is a strategic approach where companies deliberately work with other companies to achieve mutual advantages. Cooperative strategy in marketing manifests, for example, in shared distribution channels or co-branding initiatives. The cooperative strategy does not contradict competitive strategy — it complements it. Adam Brandenburger and Barry Nalebuff introduced the theoretical foundation in “Co-opetition” (1996): companies simultaneously exist in cooperative and competitive relationships.
Game theory provides the analytical foundation for cooperative strategies. Brandenburger and Nalebuff used the Value Net — a game-theoretic model that considers not only competitors but also complementors: companies whose products increase the value of your own offering.
Why Cooperate Instead of Compete?
Cooperation makes sense when the total market grows through collaboration. Brandenburger and Nalebuff formulate: “Business is cooperation when it comes to creating a pie and competition when it comes to dividing it up.” Companies cooperate to enlarge the pie and compete to secure the largest share.
Forms of Cooperative Strategy
Joint Venture — Establishing a Shared Company
A joint venture is a formal cooperation where two or more companies establish a jointly owned, legally independent company. Both partners contribute resources, knowledge, and capital. An example is the joint venture between BMW and Toyota for joint development of fuel cell technology — BMW contributes vehicle integration, Toyota contributes fuel cell know-how.
Strategic Alliance — Without a Shared Company
A strategic alliance is a cooperation where companies work together without establishing a shared company. The partners remain legally independent. An example is the Star Alliance in aviation: airlines like Lufthansa, United, and Singapore Airlines share route networks, lounges, and frequent flyer programs but continue to compete on individual routes.
Co-opetition — Cooperating and Competing Simultaneously
Co-opetition is simultaneous cooperation and competition between companies. Samsung supplies OLED displays to Apple (cooperation as supplier) and competes in the smartphone market directly (competition with the Galaxy series). Co-opetition works because the cooperation and competition areas are clearly separated: Samsung profits from Apple’s display orders, Apple profits from Samsung’s technology lead in OLED.
Licensing Agreement — Sharing Knowledge for a Fee
A licensing agreement is a cooperation form where one company grants another the right to use technology, brand, or knowledge in exchange for a license fee. Qualcomm licenses its mobile communications patents to smartphone manufacturers worldwide — Qualcomm earns from the technology, manufacturers save R&D costs.
Consortium — Project-Based Collaboration
A consortium is a time-limited cooperation of multiple companies for a specific project. Consortia are typical for large projects that no single company can manage alone. Airbus originated as a European consortium to compete with Boeing — no single European manufacturer had the resources for a widebody aircraft program.
Which Is the Best Form of Cooperation?
No form of cooperation is fundamentally better than another. Joint ventures suit long-term, capital-intensive projects. Strategic alliances suit flexible collaboration without capital commitment. Co-opetition suits industries where cooperation and competition occur simultaneously. The choice depends on strategic goals, available resources, and trust between partners.
Distinguishing Cooperative Strategy from Other Concepts
Cooperative strategy is not the same as competitive strategy.
A cooperative strategy is the approach of working with other companies to achieve mutual advantages, while competitive strategy defines how a company competes against others. Both are complementary: co-opetition shows that cooperation and competition can occur simultaneously.
Cooperative strategy is not the same as acquisition.
A cooperative strategy is the approach of working with other companies while both maintain their independence, while an acquisition means the complete takeover of one company by another. Cooperation is more reversible and flexible than acquisition.
Cooperative strategy is not the same as niche strategy.
A cooperative strategy is the approach of achieving advantages through collaboration with other companies, while the niche strategy describes concentration on a limited market segment. Niche companies can use cooperative strategies to close capability gaps they cannot fill alone.
Conclusion
A cooperative strategy is a strategic approach that complements the classical competitive strategy according to Michael Porter. Brandenburger and Nalebuff showed with “Co-opetition” (1996) that companies can — and must — cooperate and compete simultaneously. Joint ventures, strategic alliances, and co-opetition are instruments that companies of any size can deploy. Successful cooperative strategies require clear goal definition, compatible interests, and the discipline to cleanly separate cooperation and competition areas. Cooperative strategy is a continuous process of partner selection, negotiation, and validation.
Sources
- Brandenburger, Adam M.; Nalebuff, Barry J.: Co-opetition. Currency Doubleday, 1996.
- Porter, Michael E.: Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press, 1980.
Frequently Asked Questions About Cooperative Strategy (FAQ)
What is a cooperative strategy?
A cooperative strategy is a strategic approach where companies deliberately work with other companies — including competitors — to achieve mutual advantages that none could achieve alone. It encompasses joint ventures, strategic alliances, licensing agreements, and co-opetition.
What is co-opetition?
Co-opetition is a concept introduced by Adam Brandenburger and Barry Nalebuff in 1996 that describes simultaneous cooperation and competition between companies. Companies cooperate where they can jointly grow the total market and compete where they fight for market share. Samsung supplies displays to Apple (cooperation) and competes in the smartphone market (competition).
What is a joint venture?
A joint venture is a formal cooperation where two or more companies establish a jointly owned, legally independent company. Both partners contribute resources and share risks, costs, and profits. Joint ventures are typical for market entry into new regions where local knowledge is required.
What is the difference between cooperative strategy and competitive strategy?
Competitive strategy defines how a company competes against others. Cooperative strategy defines how a company works with others. Both are not opposites — co-opetition shows that companies can cooperate and compete simultaneously. Cooperative strategy is an instrument within the overall strategy, not its alternative.
What are the risks of a cooperative strategy?
The greatest risks are: knowledge leakage to the cooperation partner, dependence on a partner, cultural conflicts between organizations, and unequal power dynamics. Successful cooperations require clear contractual arrangements, defined interfaces, and a shared understanding of goals.
When is a cooperative strategy appropriate?
A cooperative strategy is appropriate when a company alone lacks the resources, knowledge, or market access to achieve a strategic goal. Typical situations: entering a new market, joint R&D projects, establishing an industry standard, or accessing complementary technologies.
- Cooperative Strategy
- Co-opetition
- Joint Venture
- Strategic Alliance
- Competitive Strategy
