Building Business Resilience with Coopetition Strategies

Building Business Resilience with Coopetition Strategies

The Power of Coopetition in Times of Crisis

The world has become more uncertain, and the business environment follows the steps, and crises—whether economic downturns, geopolitical conflicts, pandemics, or supply chain disruptions—pose significant threats to organisations. Traditional business models often emphasize competition as the primary strategy for survival and growth. However, recent research suggests that cooperation and competition with industry rivals—can significantly enhance organisational resilience.

A recent study by Wojciech Czakon and Katarzyna Czernek-Marszałek was published in Industrial Marketing Management. It explores how businesses in the tourism sector leveraged coopetition during the COVID-19 crisis. The study provides compelling evidence. Companies collaborating with competitors could better adapt, stabilise, and survive. This was more effective than relying solely on internal resources.

Key findings of the study include:

• Sensemaking is critical: Businesses must interpret crises collectively and develop shared responses.

• Reducing destructive competition: Companies that avoided price wars and focused on mutual survival performed better.

• Leveraging shared resources: Competitors can benefit from joint resource use, knowledge sharing, and cooperative lobbying.

• Long-term benefits: Coopetition fosters stronger industry norms, fairer competition, and lasting strategic partnerships.

While the study is rooted in the tourism industry, the insights universally apply to businesses across sectors. This article will extend the study’s conclusions into a practical framework for applying coopetition in any business. It will present a hypothetical case study demonstrating its application. The article will conclude with key business insights on coopetition-driven resilience.

A Universal Framework for Applying Coopetition in Business

Businesses across all industries can adopt coopetition as a resilience-building strategy. The following framework provides a step-by-step approach to integrating competitor collaboration into business crisis management.

Stage 1: Sensemaking – Understanding the Crisis

Objective: Quickly analyze the crisis, interpret risks, and identify opportunities for collaboration.

Example:

• Retail Sector: Competing grocery chains share information about product shortages and alternative suppliers.

• Manufacturing Sector: Rival firms analyze raw material supply disruptions together.

Recent studies from AI Research Lab reveal that 83% of businesses engaged in collective crisis response recovered faster. They showed better recovery than those who operated in isolation. Moreover, companies that formed industry alliances saw a 24% reduction in operational losses during global supply chain crises.

Stage 2: Coopetitive Actions – Balancing Competition & Cooperation

Objective: Implement strategies that reduce harmful competition while leveraging shared resources to strengthen all players.

Step 1: Reduce Destructive Competition

✔️ Avoid Price Wars
✔️ Respect Each Other’s Market Segments
✔️ Adopt Ethical Competitive Practices

Example:

• Tech Industry: Cybersecurity firms avoid undercutting each other on pricing and instead compete on service differentiation.

• Energy Sector: Competing solar panel manufacturers agree on standardizing warranties rather than lowering prices unsustainably.

Step 2: Strengthen Collaboration

✔️ Share Resources (Facilities, Equipment, Workforce)
✔️ Refer Clients to Each Other When at Capacity
✔️ Exchange Market Intelligence & Best Practices
✔️ Pool Efforts for Collective Bargaining & Lobbying

Example:

• Healthcare Industry: Competing hospitals collaborate to share PPE and ventilators during a crisis.

• Telecommunications: Mobile operators agree on a mutual infrastructure-sharing model to reduce network downtime.

Step 3: Build Formal & Informal Coopetition Networks

✔️ Form Alliances & Industry Groups
✔️ Establish Communication Norms Between Competitors
✔️ Create Crisis-Response Working Groups

Example:

• Automotive Industry: Car manufacturers jointly invest in battery production to reduce dependency on external suppliers.

• Fashion Industry: Competing brands agree on sustainability guidelines to reduce carbon footprints collectively.