"grad Coopetition"

Co-opetition: The Value Net (Brandenburger & Nalebuff, 1996)

Overview

Co-opetition recognizes that business relationships are never purely competitive or purely cooperative. The Value Net model extends Porter's focus on rivalry by adding complementors — players whose products increase the value of yours. The PARTS framework (Players, Added value, Rules, Tactics, Scope) provides a structured approach to changing the game rather than just playing it.

When to Use

Trigger conditions:

• User is analyzing a relationship that is simultaneously cooperative and competitive
• User asks about strategic alliances with competitors
• User needs to identify complementors or map all players in a value network
• User mentions "frenemy", "coopetition", "complementors", or "value net"

When NOT to use:

• For pure competitive analysis -> use Porter's Five Forces
• For internal organizational balance -> use grad-ambidexterity
• For international market entry mode -> use grad-oli

Assumptions

IRON LAW: Every Business Relationship Contains BOTH Cooperative
          and Competitive Elements

There is NO purely competitive or purely cooperative relationship.
A supplier cooperates (provides inputs) AND competes (captures margin).
A competitor competes (takes share) AND cooperates (grows the category).

Any analysis that labels a player as ONLY competitor or ONLY partner
is incomplete. Always map BOTH dimensions.

• Business is a game — but players can change the game, not just play it
• Value creation is cooperative; value capture is competitive
• The same player can be a competitor AND a complementor simultaneously

Methodology

Step 1: Map the Value Net

Place the focal firm at the center and map four player types: Customers, Suppliers, Competitors (whose products DECREASE your value), and Complementors (whose products INCREASE your value). Key insight: a player can occupy multiple roles (Samsung supplies displays to Apple AND sells competing phones).

Step 2: Assess Added Value

For each player, calculate added value:

• Added value = Total value of the game WITH the player MINUS total value WITHOUT the player
• A player can never capture more than their added value
• Strategies should aim to increase YOUR added value and manage others'

Step 3: Apply PARTS Framework

Systematically evaluate five levers to change the game:

Step 4: Design Co-opetition Strategy

For each key relationship, specify:

• Where to cooperate (value creation): joint R&D, standard setting, market expansion
• Where to compete (value capture): pricing, customer acquisition, differentiation
• Boundary rules: what information to share, what to protect

Output Format

# Co-opetition Analysis: {Focal Firm}

## Value Net Map
- Customers / Suppliers / Competitors / Complementors: {list each, note dual roles}

## Added Value Assessment
| Player | Added Value | Leverage |
|--------|-------------|----------|
| {Focal firm} | {assessment} | {high/medium/low} |

## PARTS Analysis
| Lever | Current State | Recommended Change |
|-------|---------------|-------------------|
| Players / Added value / Rules / Tactics / Scope | {current} | {action} |

## Co-opetition Strategy
- Cooperate on: {activities} | Compete on: {activities} | Boundary rules: {policy}

Gotchas

• Complementor identification is the hardest part: Force yourself to ask: "Whose product makes mine more valuable?" The biggest insights hide here.
• Dual roles create tension: When a partner is also a competitor, define explicit information boundaries.
• Added value is dynamic: Every major move changes everyone's added value. Reassess after launches or market entries.
• Cooperation without boundaries leads to knowledge leakage: Alliances need explicit IP firewalls.
• PARTS is about changing the game: If your analysis only describes the current game, you missed the point.

References

• For game theory foundations of co-opetition, see references/coopetition-game-theory.md
• For PARTS framework detailed application guide, see references/parts-framework-guide.md