MXO June 2020 Summarised Extracts: The importance of coopetition

MXO is a private peer group forum for leaders. The intention is to create an open forum for debate in which leaders from a range of sectors around the world have the opportunity to come together on a regular basis in a confidential environment and share, learn and grow together.

In June’s sessions, we focussed on the topic: What do we need to do now to deliver sustainable growth over the next five years. Through a series of workshops the conversations tackled the question and raised a broad array of themes. These included:

• • What to expect from the new environment
    
  • Leadership and unpredictability
    
  • COVID19 as a catalyst for cultural and organisational transformation
    
  • Digital Transformation and Sustainability
    
  • The importance of themes such as coopetition
    

In a series of shorts, we have highlighted critical outputs.

IS THE ENVIRONMENT RIPE FOR AN INCREASE IN COOPETITION? 

We examined the concept of coopetition and the extent to which it can help to improve business innovation and resilience.

• • What is it: “collaboration between business competitors, in the hope of mutually beneficial results”.  
  • This is a phenomena that has been around for some time with its heritage in Game Theory but is not present in all sectors or markets. In auto for example it has been present for some time, perfectly represented through the sharing of platforms by competitors.  
  • With the need for innovation to enhance business models and reach coupled with, in many cases, at least short term funding restrictions, does coopetition present a solution and an opportunity.  
  • This is a shift in behaviour, outlook and therefore culture. It is not just a structural change but something which, to be successful, requires a significant pivot in outlook.  
  • This pivot requires leadership to set the vision, provide perspective and convince of the benefits.  
  • This pivot requires commitment and long term vision. These are typically not short-term experiments because of the nature of the change in relationship and interaction and, as mentioned before, the need for a significant change in culture to enable them.