It is a coined word that comes from competition and cooperation. Simply said coopetition is where you join hands with your archrival or your competitor to jointly provide a benefit, through two brands, to the same target audience.
From a business perspective, doing this entails changing the rules of the game. In place of competing with your competitor, on any parameter, when you join hands, you lead towards negating competition. This is a strategic business move to replace competition.
It’s really hard to do for various reasons.
Some examples of this, in a way, that come to mind are the famous cola wars, between Pepsi & Coca-Cola, Burger King & McDonalds and BMW & Mercedes Benz. Targeting together in what seemed to be direct confrontation actually ended up benefiting both brands by expanding the market.
It isn’t pure coopetition in the true sense and yet it worked out in that manner.
If we can put our traditional business mindset away for a moment and approach our rivals with the intent of ‘let’s see how we can grow this market’ it creates a platform for growth whilst giving value to the customers. In doing this CSR is a great option. It provides the platform for competing brands to cooperate on a common cause that is relevant to their customers.