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22.07.2021

Why Coopetition Boosts Your Ecosystem and Vice Versa

The world in which companies act becomes more complex every day. Business environments are more diverse, dynamic, and interconnected than ever. Which makes them far less predictable.

One strategy to survive this faster environment is coopetition. This requires companies to create business strategies that capitalize on relationships in order to create maximum value in the marketplace. A model in which a network of stakeholders cooperate and compete to create maximum value.

DIGITAL DISRUPTION

Digital disruption is radically changing the way businesses start and grow. Over the past few years, several industries have been shaken up. Global digital transformation forces all industries to radically rethink proven business models, to change fast and continuously.

No longer can the corporate giants rely on being the leanest and meanest to stay at the top of their game. Amassing resources and expertise are no longer enough to guarantee success. To a large extent, it’s who and more than what you know that matters.

Being agile and responsive is crucial to gaining, and keeping a strategic advantage. As such, flexibility is key to success.

SMALL BUSINESSES

Small businesses face enormous competition, from large global companies and established market leaders to innovative entrepreneurs working from their own back rooms.

It is the art of collaboration that gives SMEs a strategic advantage in a competitive market. The infrastructure of large companies can be cumbersome and unwieldy. Whereas small businesses that operate within a collaborative network can make decisions much faster and adapt to new trends and customers.

Hundreds of startups are launched every month. Startups are changing the way we think about competition, as they tend to thrive on access to resources they do not have. They use new ways of doing business, such as freelancing and crowdfunding. With the rise of startups and small businesses, digital commerce continues to grow and the boundaries between industries are disappearing.

COOPERATION IS THE NEW COMPETITION

Competition suggests a win-lose situation where data, contacts and other resources are accumulated and closely guarded. In contrast, cooperation and co-opetition reflect a win-win strategy as they allow the sharing of information and ideas.

Repeated innovation is easier and faster to achieve in this context than in a secretive and hyper-competitive environment, as collective intelligence is a limitless resource that can be shared openly to generate ideas and bring about change. By constantly innovating and renewing what you do and how you do it, you can compete even in a crowded market.

Coopetition or cooperative competition is the new way, where companies encourage each other to be more productive by working together, while ensuring each other's competitive advantage. At first glance, it may seem strange that competition and cooperation can exist side by side. But in fact, collaboration is just competition in a different form, working with the competition to achieve greater success together.

The main advantage of cooperation and competition is speed and time to market. By working together, the time and cost of developing new products is greatly reduced. Cooperation (and co-opetition) allows business owners to access new products and markets with the speed that today's market demands.

THE FUTURE BELONGS TO ECOSYSTEMS

Today, your competitive advantage is not driven by the resources you control, but by those you can access. Increasingly, rather than owning resources and capabilities outright, we use platforms to access ecosystems of technology, talent, and information. The path to success no longer lies in clawing your way to the top of the heap, but in nudging your way to the center of the network.

The future belongs to ecosystems. Networks of organizations transacting to create value for themselves and the rest of the ecosystem within one or more market environments. The ability to innovate – whether by improving existing products, services or processes or by generating new ones – is crucial to business success.

Being able to capitalize on your relations requires a deep and profound insight into your ecosystem. Knowing your competitors and partners will lead to more possibilities of collaboration (or coopetition). This will not only push you up but can improve the situation of the entire cluster.

Build your own ecosystem!

When you see these benefits, you want to better understand the ecosystem you are part of. That’s where we can help you. DataScouts provides a platform in which you can create a business ecosystem map, monitor your value network, and be aware of what happens in your ecosystem, the trends in your sector, and the achievements of peers. The DataScouts platform combines public data, own private data, and extra content that is relevant to the specific use case. Without any problem, you can visualize tons of information in no time. Contact us and create your own ecosystem today!

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