What does 'co-opetition' refer to in the context of supply chains?

'Co-opetition' refers to the strategic practice of collaborating with competitors while still competing for market share. In the context of supply chains, firms may engage in co-opetition to achieve mutual benefits such as cost reductions, increased market knowledge, or enhanced innovation. By cooperating on certain initiatives—such as sharing logistics resources, jointly developing new technologies, or pooling research efforts—companies can leverage each other's strengths while still maintaining their competitive edge in the marketplace.

This concept recognizes that in today's interconnected business environment, companies can coexist and benefit from strategic alliances even with market rivals. For example, two companies in the same industry might collaborate on sustainability initiatives to minimize environmental impact, while still competing fiercely for customers.

In contrast, the other options emphasize different aspects that do not capture the essence of co-opetition. Competing exclusively in price focuses solely on competition without acknowledging collaboration. Opacity in supplier agreements suggests a lack of transparency that doesn't relate to the idea of cooperative strategies. Fixed supply chain partnerships imply a rigid structure rather than the flexible and dynamic interactions that characterize co-opetition.