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The thinking behind this axiom began to be challenged in the mid-1990s, with the publication of smart, highly-regarded competitive strategy books, such as Co-opetition by Barry Nalebuff and Adam Brandenburger. Stakeholders are scrutinizing the ways companies deliver value to consumers.
And along with this increased transparency, you’re held accountable for areas you know less about: new technologies, new markets, new cultures and geographies representing new stakeholders. Companies must now appeal to a plethora of global consumer markets, each with distinctive attitudes and desires.
A company sets up a joint venture with a partner that has complementary assets and capabilities, in order to limit up-front investments, speed up market entry, and reduce risk. Benefits and risks of co-opetition. Another risk is the opportunity cost of not benefiting from lower investment costs.
Even today, with more than $200B in market capitalization largely derived from that same data, investors struggle to value the company’s information. We need to mark our information assets to market or depreciate them as they become obsolete. Where we land is firmly in the face of a management paradox. Consider Bloomberg.
The way forward is co-opetition, in which entities in the same industries act with what everyone recognizes as partial congruence of interests. Nalebuff have written in their book Co-Opetition , businesses that form co-opetitions become more competitive by cooperating. There [are] lots of co-opetitions.”.
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