Updated November 2026 · reviewed for today
In short
Coopetition (co-opetition) is when companies cooperate and compete at the same time: they work together to make a market or a shared input bigger, then compete for their share of it. The idea was popularised by game theorists Adam Brandenburger and Barry Nalebuff, in their 1995 Harvard Business Review article “The Right Game” and their 1996 book Co-opetition.
How it works
01
Map who is who
Put customers, suppliers, competitors and complementors around your firm on one page. A company can play more than one role: a supplier and a competitor at once.
02
Split the activities
Cooperate where scale, cost sharing or a common standard helps both sides; compete where customers choose between you. Research on business networks describes rivals cooperating and competing simultaneously in different activities (Bengtsson and Kock, 2000).
03
Protect the core
Agree what is shared and what is not: data, customer relationships and roadmaps usually stay out of the cooperative part.
04
Plan for change
The balance shifts as markets grow; partners can become direct rivals, so contracts need exit and switching clauses.
Where you see it today
Netflix and Amazon
Netflix’s annual report for 2025 says it runs the vast majority of its computing on Amazon Web Services and cannot easily switch, while noting that the retail side of Amazon competes with it. One company is both its infrastructure supplier and a streaming rival.
Microsoft and the AI model makers
Microsoft’s fiscal 2026 annual report describes a long-term strategic partnership with OpenAI, extended in October 2025 and April 2026, and says its AI offerings compete with products from hyperscalers, open-source offerings and frontier model providers, “some of which are also current or potential partners”.
Chips: customers who build rivals
Nvidia’s fiscal 2026 annual report warns that some customers have the expertise to develop their own solutions to replace its products, while those same customers are among its largest buyers.
Airline alliances and standards bodies
Long before AI, airlines in global alliances shared routes and loyalty programmes while competing for passengers, and rival tech firms co-wrote standards such as USB or Wi-Fi before competing on devices.
Coopetition in practice
Netflix and Amazon
Where they cooperateAWS cloud computing
Where they competeStreaming video (Amazon's retail side)
Microsoft and OpenAI
Where they cooperateLong-term strategic partnership and investment
Where they competeAI products for consumers and businesses
Nvidia and large cloud customers
Where they cooperateSupply of AI chips and systems
Where they competeCustomers' own in-house chips
Airline alliance members
Where they cooperateRoute networks and shared benefits
Where they competePassengers on overlapping routes
How to use it
- Map your network: list who is a customer, supplier, competitor and complementor, and mark anyone who sits in two boxes.
- Write down which activities you share with a rival and which you keep closed, before you sign anything.
- Avoid depending on a rival for a critical input without a switching plan; Netflix's filing calls out how hard it is to leave AWS.
- In AI, assume today's model partner may launch a competing product; keep your customer relationship and data on your side.
- Review each coopetitive deal yearly: is the shared pie still growing faster than the rival's share of it?
The Business Engineer lens
The AI stack is built on coopetition: cloud providers, chipmakers and model labs supply, fund and compete with each other at once. The Business Engineer maps these dual roles to see where a partner’s incentives will turn against you.
Read: Coopetition in AI: Microsoft-OpenAI, From Partners to Frenemies →Explore everything we publish →Related: Game theory · Strategic alliance · Network effects · Porter's Five Forces · Blue ocean strategy
Frequently asked questions
What is coopetition?
Cooperation between competitors: firms work together in some activities, such as infrastructure or standards, while competing for customers in others.
Who coined coopetition?
The idea was popularised by Adam Brandenburger and Barry Nalebuff in their 1995 HBR article "The Right Game" and their 1996 book Co-opetition.
What is an example of coopetition?
Netflix runs most of its computing on Amazon Web Services while competing with Amazon in streaming, as its 2025 annual report describes.
What are the risks of coopetition?
Dependence on a rival for a critical input, leaking data or know-how, and partners turning into direct competitors as the market changes.
Sources
- Brandenburger & Nalebuff (1995), The Right Game: Use Game Theory to Shape Strategy, Harvard Business Review
- Brandenburger & Nalebuff (1996), Co-opetition (Open Library record)
- Bengtsson & Kock (2000), Coopetition in Business Networks: to Cooperate and Compete Simultaneously, Industrial Marketing Management
- Netflix, Inc. (2026), Form 10-K for fiscal year 2025, SEC
- Microsoft Corporation (2026), Form 10-K for fiscal year ended 30 June 2026, SEC
- NVIDIA Corporation (2026), Form 10-K for fiscal year ended 25 January 2026, SEC
The full guide
The complete explainer, cleaned up and reformatted for mobile.
FourWeekMBABusiness EngineerAt a glance
Coopetition, a portmanteau of "cooperation" and "competition," is a business strategy where organizations simultaneously cooperate with some competitors while competing fiercely with others.
Coopetition allows companies to leverage the strengths of both collaboration and competition to drive innovation, expand markets, and achieve shared objectives.
Layout refreshed 7 October 2026. The article text below is unchanged.
Visual overview and quick answers (tap to expand)
Coopetition describes a situation where organizations both compete and cooperate, which is also known as cooperative competition. A recent example is how the Netflix streaming platform has been among the major customers of Amazon AWS cloud infrastructure, while Amazon Prime has been among the competitors of the Netflix Prime content platform.
Concept
ExplanationCoopetition, a portmanteau of “cooperation” and “competition,” is a business strategy where organizations simultaneously cooperate with some competitors while competing fiercely with others. This approach acknowledges that in certain industries or markets, cooperation can be just as valuable as competition. It involves a delicate balance between collaborating on mutually beneficial goals and protecting one’s competitive advantage. Coopetition allows companies to leverage the strengths of both collaboration and competition to drive innovation, expand markets, and achieve shared objectives.
Key Components
ExplanationCoopetition involves several key components:
– Collaboration: Organizations cooperate with competitors on specific projects, initiatives, or objectives where they share common interests.
– Competition: Simultaneously, they compete with these same competitors in other aspects of their business.
– Mutual Benefit: Coopetition should result in mutual benefits for all parties involved. Each organization gains value from the collaboration while preserving its competitive edge in other areas.
– Strategic Alliances: Strategic alliances, joint ventures, partnerships, and industry consortia are common forms of coopetition.
– Collaboration: Organizations cooperate with competitors on specific projects, initiatives, or objectives where they share common interests.
– Competition: Simultaneously, they compete with these same competitors in other aspects of their business.
– Mutual Benefit: Coopetition should result in mutual benefits for all parties involved. Each organization gains value from the collaboration while preserving its competitive edge in other areas.
– Strategic Alliances: Strategic alliances, joint ventures, partnerships, and industry consortia are common forms of coopetition.
Application
ExplanationCoopetition is widely applied in various industries and scenarios:
– Technology: Tech companies often collaborate on open-source projects while fiercely competing in the market.
– Automotive: Car manufacturers cooperate on the development of common technologies like electric vehicle charging standards while competing for market share.
– Pharmaceuticals: Pharmaceutical companies may collaborate on research for rare diseases but compete in the sale of drugs for more common conditions.
– Sports: In sports, teams cooperate with each other to organize leagues and events while competing on the field.
– Technology: Tech companies often collaborate on open-source projects while fiercely competing in the market.
– Automotive: Car manufacturers cooperate on the development of common technologies like electric vehicle charging standards while competing for market share.
– Pharmaceuticals: Pharmaceutical companies may collaborate on research for rare diseases but compete in the sale of drugs for more common conditions.
– Sports: In sports, teams cooperate with each other to organize leagues and events while competing on the field.
Benefits
ExplanationCoopetition offers several benefits:
– Innovation: Collaboration with competitors can lead to innovation, as organizations pool resources, share expertise, and tackle complex challenges together.
– Market Expansion: By working together, companies can enter new markets or expand their reach more effectively than they could individually.
– Risk Mitigation: Sharing risks and costs can be advantageous, especially in industries with high research and development expenses.
– Cost Efficiency: Coopetition can reduce duplication of efforts and save costs in areas where collaboration is more efficient.
– Innovation: Collaboration with competitors can lead to innovation, as organizations pool resources, share expertise, and tackle complex challenges together.
– Market Expansion: By working together, companies can enter new markets or expand their reach more effectively than they could individually.
– Risk Mitigation: Sharing risks and costs can be advantageous, especially in industries with high research and development expenses.
– Cost Efficiency: Coopetition can reduce duplication of efforts and save costs in areas where collaboration is more efficient.
Challenges
ExplanationChallenges associated with coopetition include:
– Trust: Building trust among competitors can be challenging, as organizations must strike a balance between cooperation and protecting their interests.
– Conflict of Interest: Differing objectives and strategies can lead to conflicts of interest within coopetition arrangements.
– Intellectual Property: Safeguarding intellectual property and proprietary information in a cooperative setting requires careful management.
– Trust: Building trust among competitors can be challenging, as organizations must strike a balance between cooperation and protecting their interests.
– Conflict of Interest: Differing objectives and strategies can lead to conflicts of interest within coopetition arrangements.
– Intellectual Property: Safeguarding intellectual property and proprietary information in a cooperative setting requires careful management.
Real-World Application
ExplanationExamples of coopetition can be found in industries such as telecommunications, where companies collaborate on the development of industry standards (e.g., 4G, 5G) while fiercely competing for customers. – The airline industry sees coopetition with airlines forming alliances (e.g., Star Alliance) to offer passengers a broader network of routes while maintaining competition on ticket pricing. – In the retail sector, retailers may collaborate on supply chain efficiencies while competing for market share.
The Netflix case study
As highlighted on the Amazon AWS website:
Online content provider Netflix can support seamless global service by using Amazon Web Services (AWS). AWS enables Netflix to quickly deploy thousands of servers and terabytes of storage within minutes. Users can stream Netflix shows and movies from anywhere in the world, including on the web, on tablets, or on mobile devices such as iPhones.
Amazon AWS infrastructure and architecture, which hosts Netflix’s content platform
Why does Netflix run on AWS instead of its own data centers?
In reality, Netflix is focused on providing great content and building its brand through that.
That is why, in these years, we’re assisting the “mediafication” of Netflix, and I won’t be surprised if in the coming years, at a certain point, produced content investments will pass the licensed content investments.
Key Highlights
- Coopetition: Coopetition refers to the phenomenon where organizations simultaneously compete and cooperate with each other. This term describes a modern business practice in which companies maintain both competitive and collaborative relationships with one another.
- Netflix and Amazon AWS: An example of coopetition is the relationship between Netflix and Amazon AWS. Netflix, a major customer of Amazon AWS, relies on AWS’s cloud infrastructure to support its streaming services. However, Amazon Prime, which offers its own content streaming platform, competes with Netflix’s content platform.
- Netflix’s Infrastructure Choice: Netflix moved the vast majority of its computing to Amazon AWS and relies heavily on it to run its service. This decision allows Netflix to focus on content creation and brand-building, leveraging Amazon’s robust cloud infrastructure.
- Business Model and Revenue: Netflix operates on a subscription-based business model with different plans offering access to streaming content. As of 2022, Netflix had around 230 million paid subscribers worldwide. Its revenue in 2021 surpassed $29.6 billion, with significant operating and net income.
- Content Strategy: Netflix started producing its own content under the Netflix Originals brand in 2013. This strategic move has become a vital asset for the company, helping it differentiate from competitors and drive subscriber growth.
Additional Examples
- Airline Alliances:
- Star Alliance: Comprising airlines like Lufthansa, United, and Air Canada, these competitors collaborate to provide passengers with extensive route networks and shared benefits.
- SkyTeam: Airlines like Delta, KLM, and Korean Air form part of this alliance, allowing passengers to seamlessly transfer between member airlines.
- Oneworld: American Airlines, British Airways, and Cathay Pacific are among the members, offering passengers a global network of flights.
- Automotive Industry:
- Toyota and BMW: Collaborated on hybrid technology development to improve fuel efficiency and reduce emissions in their vehicles.
- Ford and General Motors: Competing American automakers occasionally collaborate on projects like jointly developing a new generation of automatic transmissions.
- Pharmaceutical Research:
- Consortia: Various pharmaceutical companies cooperate in consortia to fund and conduct pre-competitive research in areas like cancer treatment and drug discovery.
- Clinical Trials: Competing pharmaceutical companies may collaborate on clinical trials to evaluate drug effectiveness more efficiently.
- Technology Standards:
- Industry Standards Groups: Tech giants like Microsoft, Apple, and Google participate in industry standards groups (e.g., W3C for web standards) to ensure interoperability and promote common technologies.
- Open Source Projects: Companies like IBM, Microsoft, and Google contribute to open-source projects, fostering innovation while sharing code with competitors.
- Movie Theaters:
- Movie Distributors: Competing theater chains cooperate to negotiate favorable terms with film studios for exclusive movie releases, ensuring a broader audience for blockbusters.
- Agricultural Seed Industry:
- Licensing Agreements: Seed companies like Monsanto and DuPont Pioneer enter licensing agreements to share genetic traits, enabling them to develop competitive seed products.
- Sports Apparel:
- Sponsorship: Nike and Adidas often compete for athlete endorsements and sports team sponsorships but may sponsor the same athletes or teams.
- Satellite Launch Services:
- Commercial Space Launch: Companies like SpaceX and Arianespace provide satellite launch services to each other’s customers, expanding their market reach.
- Financial Services:
- Shared ATM Networks: Banks collaborate by creating shared ATM networks, allowing their customers to access cash at a larger number of ATMs without fees.
- Retail Partnerships:
- In-Store Sections: Retailers like department stores may host dedicated in-store sections for competing brands’ products, offering customers a wider selection.
- Software Development:
- Cross-Platform Compatibility: Competing software companies often cooperate to ensure their products are compatible across different platforms (e.g., Microsoft Office on Mac and Windows).
- Telecommunications:
- Network Sharing: Telecom companies may collaborate on infrastructure sharing to reduce costs and expand coverage, especially in less profitable rural areas.
- Food and Beverage Industry:
- Co-Branding: Competing fast-food chains may create co-branded menu items for a limited time, attracting customers from both brands.
- Fashion Industry:
- Collaborative Collections: Fashion designers from rival brands may collaborate on limited-edition clothing lines to generate buzz and attract new customers.
Case Studies
Research and Development
DescriptionCompeting companies collaborate on research and development projects to share expertise, reduce costs, and accelerate innovation.
Implications– Access to complementary knowledge and resources. – Faster development of new products or technologies. – Cost-sharing opportunities.
ExampleExample: Pharmaceutical companies may collaborate on joint research projects to develop new drugs, sharing research costs and expertise while competing in the market.
Industry Standards
DescriptionCompetitors within an industry cooperate to establish industry standards, protocols, or certifications, benefiting the entire industry.
Implications– Enhances interoperability and compatibility. – Boosts customer trust and adoption. – Reduces fragmentation within the industry.
ExampleExample: Tech companies cooperate to establish common standards for wireless communication protocols, ensuring compatibility among their devices and products.
Joint Marketing Campaigns
DescriptionRival firms join forces for marketing campaigns, promotions, or events that promote the industry or specific products, attracting a larger audience.
Implications– Increased marketing reach and exposure. – Cost-sharing opportunities for advertising and promotion. – Potential to create industry buzz and excitement.
ExampleExample: Soft drink competitors may collaborate on a joint summer marketing campaign to promote the overall soda industry and increase consumer demand for carbonated beverages.
Supply Chain Collaboration
DescriptionCompeting companies collaborate on supply chain logistics and transportation to reduce costs, optimize efficiency, and ensure reliable product delivery.
Implications– Lower transportation and logistics costs. – Reduced supply chain disruptions and delays. – Enhanced reliability in meeting customer demand.
ExampleExample: Retailers that compete for customers may collaborate on a shared distribution center to streamline inventory management and reduce delivery times.
Patent Pools
DescriptionCompetitors form patent pools to collectively license their patented technologies to third parties, ensuring fair access to essential innovations.
Implications– Provides access to critical technologies. – Reduces legal disputes and patent infringement risks. – Encourages innovation by sharing patents.
ExampleExample: Semiconductor companies contribute their patents related to a specific technology (e.g., Wi-Fi) to a patent pool, allowing others to use these technologies under agreed-upon terms.
Industry Associations
DescriptionCompanies within the same industry join industry associations to address common challenges, advocate for shared interests, and promote industry growth.
Implications– Collective advocacy on industry issues. – Networking opportunities and knowledge sharing. – A unified voice on regulatory matters.
ExampleExample: Airlines in the same region may be members of an aviation industry association that addresses common concerns like air traffic control, safety regulations, and environmental policies.
Game Theory
DescriptionGame Theory is a mathematical framework for analyzing strategic interactions between rational decision-makers. Game theory models various scenarios, such as cooperation, competition, and negotiation, to predict outcomes and optimal strategies. By understanding the incentives, motivations, and behaviors of other players, organizations can make better-informed decisions and maximize their outcomes in competitive or cooperative situations.
When to ApplyApply Game Theory when analyzing strategic interactions, such as cooperation and competition, between organizations. Use it to predict outcomes, assess risks, and develop optimal strategies for maximizing utility and achieving desired outcomes in complex decision-making scenarios. Implement Game Theory as a framework for understanding competitive dynamics, negotiation strategies, and decision-making processes to gain a competitive advantage and achieve strategic objectives effectively.
Alliance Portfolio Management
DescriptionAlliance Portfolio Management is a strategic approach to managing a portfolio of alliances and partnerships to achieve business objectives. Alliance portfolio managers oversee the selection, formation, and governance of alliances, ensuring alignment with organizational goals and effective execution. By balancing risks and rewards across the alliance portfolio, organizations can leverage partnerships to enhance innovation, market access, and competitive advantage.
When to ApplyConsider Alliance Portfolio Management when managing a portfolio of alliances and partnerships to achieve strategic objectives. Use it to assess partnership opportunities, prioritize investments, and optimize resource allocation across the alliance portfolio to maximize value creation and minimize risks. Implement Alliance Portfolio Management as a framework for strategic planning, partnership development, and performance management to achieve business objectives effectively.
Open Innovation
DescriptionOpen Innovation is a collaborative approach to innovation that involves leveraging external ideas, technologies, and resources to develop new products, services, or business models. Open innovation encourages organizations to collaborate with external partners, such as customers, suppliers, and competitors, to access new markets, technologies, and expertise. By embracing open innovation principles, organizations can accelerate innovation, reduce costs, and gain a competitive advantage.
When to ApplyConsider Open Innovation when seeking to leverage external ideas, technologies, or resources to drive innovation and create value. Use it to collaborate with external partners, such as customers, suppliers, and competitors, to access complementary capabilities and accelerate the development of new products, services, or business models. Implement Open Innovation as a framework for fostering collaboration, knowledge sharing, and value creation across organizational boundaries to drive innovation and competitiveness effectively.
Strategic Alliances
DescriptionStrategic Alliances are collaborative partnerships between organizations to achieve mutual goals or gain competitive advantages. Strategic alliances can take various forms, including joint ventures, licensing agreements, and co-marketing arrangements. By pooling resources, sharing risks, and leveraging each other’s strengths, organizations can access new markets, technologies, and capabilities more effectively than they could independently.
When to ApplyConsider Strategic Alliances when seeking to collaborate with other organizations to achieve strategic objectives or gain competitive advantages. Use them to access complementary resources, capabilities, or markets, and leverage partnerships to accelerate growth, innovation, or market expansion. Implement Strategic Alliances as a framework for building strategic partnerships, managing alliances effectively, and achieving mutual goals and benefits collaboratively.
Value Chain Analysis
DescriptionValue Chain Analysis is a strategic management tool that helps organizations identify and analyze the activities involved in delivering a product or service to customers. Value chain analysis involves mapping out the primary and support activities in the value chain, assessing their costs and value-added contributions, and identifying opportunities for cost reduction or differentiation. By understanding the value chain dynamics, organizations can optimize their operations, improve efficiency, and create competitive advantages.
When to ApplyConsider Value Chain Analysis when analyzing the activities involved in delivering a product or service to customers. Use it to identify strengths, weaknesses, and opportunities in the value chain, and develop strategies to enhance value creation, reduce costs, or differentiate offerings effectively. Implement Value Chain Analysis as a framework for strategic planning, process optimization, and performance improvement to achieve competitive advantages and organizational goals efficiently.
Collaborative Innovation Networks (COINs)
DescriptionCollaborative Innovation Networks (COINs) are self-organizing, interdisciplinary groups of individuals who collaborate to generate and develop innovative ideas or solutions. COINs leverage social networks and digital technologies to facilitate collaboration, knowledge sharing, and idea generation across organizational boundaries. By fostering creativity, diversity, and collective intelligence, COINs enable organizations to solve complex problems, drive innovation, and create value collaboratively.
When to ApplyConsider Collaborative Innovation Networks when seeking to harness collective intelligence and creativity to drive innovation and problem-solving. Use COINs to foster collaboration, diversity, and knowledge sharing across organizational boundaries, and leverage social networks and digital platforms to facilitate idea generation and development effectively. Implement COINs as a framework for fostering a culture of innovation, collaboration, and continuous learning to achieve strategic objectives and competitive advantages.
Joint Development Agreements (JDAs)
DescriptionJoint Development Agreements (JDAs) are legal contracts between organizations to collaborate on the development of new products, technologies, or intellectual property. JDAs define the terms, responsibilities, and intellectual property rights of each party involved in the collaboration. By sharing resources, risks, and rewards, organizations can accelerate innovation, reduce development costs, and gain access to new markets or capabilities through joint development agreements.
When to ApplyConsider Joint Development Agreements when seeking to collaborate with other organizations on the development of new products, technologies, or intellectual property. Use JDAs to define the terms, responsibilities, and intellectual property rights of each party involved in the collaboration, and leverage partnerships to accelerate innovation, reduce costs, or access new markets effectively. Implement JDAs as a framework for structuring and managing collaborative development projects to achieve mutual goals and benefits collaboratively.
Co-Innovation
DescriptionCo-Innovation is a collaborative approach to innovation that involves partnering with customers, suppliers, or other stakeholders to develop new products, services, or solutions. Co-innovation enables organizations to leverage external insights, expertise, and resources to address customer needs, drive product innovation, and create value collaboratively. By involving stakeholders in the innovation process, organizations can enhance product relevance, adoption, and market success.
When to ApplyConsider Co-Innovation when seeking to collaborate with customers, suppliers, or other stakeholders to drive product innovation and create value collaboratively. Use co-innovation to involve stakeholders in the innovation process, gather insights, and co-create solutions that address customer needs effectively. Implement Co-Innovation as a framework for fostering collaboration, customer engagement, and value creation through shared innovation efforts to achieve strategic objectives and competitive advantages.
Competitive Intelligence (CI)
DescriptionCompetitive Intelligence (CI) is the process of gathering, analyzing, and interpreting information about competitors, markets, and industry trends to inform strategic decision-making. CI helps organizations understand competitive dynamics, identify opportunities and threats, and anticipate market trends or disruptions. By monitoring competitor activities and market changes, organizations can make informed decisions and gain a competitive advantage in the marketplace.
When to ApplyConsider Competitive Intelligence when seeking to gather insights into competitors, markets, and industry trends to inform strategic decision-making. Use CI to collect and analyze information about competitor strategies, capabilities, and market positions, and leverage insights to identify opportunities, mitigate risks, or develop competitive strategies effectively. Implement Competitive Intelligence as a framework for monitoring competitive dynamics, assessing market opportunities, and making informed decisions to achieve competitive advantages and business success.
Strategic Partnerships
DescriptionStrategic Partnerships are collaborative relationships between organizations to achieve mutual goals or gain competitive advantages. Strategic partnerships can take various forms, including joint ventures, alliances, co-marketing agreements, or technology partnerships. By leveraging each other’s strengths, resources, and capabilities, organizations can access new markets, expand their product offerings, and accelerate growth more effectively than they could independently.
When to ApplyConsider Strategic Partnerships when seeking to access new markets, technologies, or resources to fuel growth or gain competitive advantages. Use it to identify potential partners with complementary strengths and capabilities, and negotiate mutually beneficial agreements that enable both parties to achieve their strategic objectives more effectively. Implement strategic partnerships as a strategy for accelerating growth, expanding market reach, and leveraging shared resources and expertise to create value collaboratively.
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