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Chapter 5  Digital business strategy

  Co‑opetition 

 Jelassi and Enders (2008) note that while the five forces framework focuses on the negative 

effects that market participants can have on industry attractiveness, the positive interactions 

between competitors within an industry can have a positive effect on profitability. Examples 

of interactions encouraged through  

co‑opetition

   include:   

   

● 

  Joint standards setting for technology and other industry standards. For example, com-

petitors within mobile commerce can encourage development of standard approaches 

such as 3G, which potential customers can be educated about, and which make it easier to 

enable customer switching.  

  

● 

  Joint developments for improving product quality, increasing demand or smoothing 

e-procurement. For example, competing car manufacturers DaimlerChrysler, Ford and 

General Motors set up Covisint, a common purchasing platform ( Chapter   7   ).  

  

● 

  Joint lobbying for favourable legislation, perhaps through involvement in trade associations.