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Co-opetition summary
Barry J. Nalebuff
Adam M. Brandenburger
A revolutionary mindset that combines competition and cooperation; The Game Theory strategy that’s changing the game of business
16 mins
Brief summary
Co-opetition by Barry J. Nalebuff and Adam M. Brandenburger is a business book that explains the benefits of collaborating with your competitors and how to balance competitive and cooperative strategies to succeed in the market.
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Co-opetition
Summary of 7 key ideas
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Key idea 1 of 7
In the business world, two players can cooperate and compete at the same time.
What does it take to make it in the business world? Some people think it’s purely a matter of getting one over on the competition. In this view, business is like a race, and you just have to keep your fingers crossed that your main competitors will trip and fall along the way.
But this metaphor doesn’t necessarily apply to all business. In reality, two business competitors might actually benefit from supporting each other, instead of trying to outrun each other.
To understand why, let’s divide business players into four groups. The first three are obvious: the customers, the suppliers and the competitors. The fourth group? These are the complementors.
In essence, complementors are products and services that supplement your product to make it more valuable. Hardware and software are perfect examples of a complementor duo: when people have better hardware, they need faster software, and vice versa.
It’s worth noting that there’s not always a clear divide between complementors and competitors. Although we’ve outlined distinct business roles – suppliers, customers and so on – players can also take on multiple roles.
Therefore, you might be cooperating with a player by adding value to your respective products and at the same time competing with them to determine how to divide the value between you. For example, in the cosmetics industry, manufacturers and retailers complement each other, as both play a vital role in supplying consumers with cosmetics. However, customers are only willing to pay a certain price for, say, lipstick, so manufacturers and retailers have to compete with each other when it comes to dividing up that sum.
And that’s exactly where the term co-opetition comes from: it’s when two players cooperate and compete with each other at the same time.
These double roles may seem confusing, but being aware of them is essential if you want to develop an effective business strategy.
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What is Co-opetition about?
Co-opetition (1996) combines game theory with business strategy, presenting a roadmap for how to create a successful venture. The authors explain how running a business is just like playing a game: it involves mastering the rules, knowing the players and the value they bring, understanding tactical approaches and being able to see the big picture. With these elements in place, you can utilize them to improve your own position in the game of business.
Co-opetition Review
Co-opetition (1996) by Barry J. Nalebuff and Adam M. Brandenburger is a book that explores the power of cooperation and competition in business strategy. Here's what makes it worth reading:
- By introducing the concept of co-opetition, the authors challenge conventional business thinking, offering a fresh and innovative approach to gaining a competitive edge.
- The book's thought-provoking insights and real-world examples demonstrate how companies can create value by collaborating with competitors, leading to improved outcomes for all parties involved.
- With its practical strategies and actionable advice, Co-opetition equips readers with the tools necessary to navigate complex business environments and thrive in an increasingly interconnected world.
Best quote from Co-opetition
Business is cooperation when it comes to creating a pie and competition when it comes to dividing it up.
—Barry J. Nalebuff and Adam M. Brandenburger
Who should read Co-opetition ?
- Anyone who likes thinking about business in theoretical terms
- Anyone interested in finance and macrobusiness
- Students of philosophy, psychology and economics
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Co-opetition FAQs
What is the main message of Co-opetition?
The main message of Co-opetition is that collaboration and competition can coexist, leading to mutual benefits.
How long does it take to read Co-opetition?
The reading time for Co-opetition varies based on the reader. However, you can read the Blinkist summary in just 15 minutes.
Is Co-opetition a good book? Is it worth reading?
Co-opetition is a valuable read as it explores innovative strategies for businesses and challenges traditional thinking. It's definitely worth reading.
Who is the author of Co-opetition?
The authors of Co-opetition are Barry J. Nalebuff and Adam M. Brandenburger.
What to read after Co-opetition ?
If you're wondering what to read next after Co-opetition , here are some recommendations we suggest:
- Rational Ritual by Michael Suk-Young Chwe
- Beautiful Game Theory by Ignacio Palacios-Huerta
- The Gamification Revolution by Gabe Zichermann and Joselin Linder
- Critical Thinking by Richard Paul
- From Strength to Strength by Arthur C. Brooks
- The Six Disciplines of Strategic Thinking by Michael D. Watkins
- The 33 Strategies of War by Robert Greene
- The Mentally Strong Leader by Scott Mautz
- Influence by Robert B. Cialdini
- A Handbook for New Stoics by Massimo Pigliucci and Gregory Lopez