Found the term Coopetition? In the event not, you’ll hear it soon. It really is triggering quite a stir in the marketing circles.
So in case that you are not familiar with the word, let’s start by identifying coopetition. If we check Wikipedia, we discover the following definition: Authentic Indian Oxford
“Coopetition or Co-opetition is a neologism coined to describe supportive competition. Co-opetition occurs when companies work together for parts of their business where they do not believe they have competitive advantage, and where they believe they can talk about common costs. For example, the cooperation between Peugeot and Toyota on shared components for a new city car for Europe in 2005. In this circumstance, companies helps you to save money on distributed costs, while remaining very competitive in other areas. For co-opetition to work, companies need to very plainly define where they are working together, and where they are contending. inches
Your long-term business success comes not only from competing successfully against other restaurants, but also by working with them to your advantage.
Coopetition is part competition and part cooperation. When restaurants work together, they can make a much larger sized and more valuable market that they ever could by working individually. Eating places can then compete with the other person to ascertain who takes the major reveal of the increased quantity of potential customers.
A good example of coopetition between restaurants is when there is section of a city or town that has several restaurants concentrated in a comparatively small area. If you look at this place from a traditional business viewpoint, opening a food service establishment there looks like an awful idea.
So why should anybody open a restaurant in an area already packed with restaurants?
The reality is that the abundance of eateries draws in customers who may visit the area without the specific restaurant in mind, and make their decision when they arrive.
This is where the competition starts off.
Typically, the restaurants with the best ambiance or most attractive menu or the best quality/price, that are filled with the most people, usually bring in the most customers…
There are plenty of typical examples of coopetition such as:
um Food courts: Every one of the restaurants are located together in places like shopping malls – sharing tables, trays, cleaning services, etc. Customers are brought to the same spot (cooperation), and then they compete for their business (competition).
o Advertising and marketing: Sometimes restaurants collaborate to put together a food magazine or similar newsletter where they each make contributions (both in money and in content) to the publication.
o Special food events: Sometimes several restaurants organize food events where they all contribute food or display their items at food stalls. As a result of participation of many restaurants –and good marketing — crowds of men and women attend these events (there is usually music involved and often many other activities as well).