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Coopetition refers to a business strategy where competing companies cooperate in certain areas while still competing in others. This paradoxical approach acknowledges that shared interests can sometimes lead to mutual benefits that outweigh the risks of collaboration. Typically, coopetition occurs in situations where companies might face a common threat or have an opportunity to create a larger market for everyone involved. Examples include joint research and development efforts, industry-wide lobbying for favorable regulations, or establishing common standards to ensure interoperability. Companies engage in coopetition to achieve goals that would be difficult or impossible to accomplish alone, such as developing new technologies, expanding into new geographical markets, or combating a dominant competitor. The success of coopetition hinges on carefully defining the boundaries of collaboration and ensuring that the cooperative elements do not undermine the core competitive advantages of each participating firm. It requires a delicate balance of trust and competitive tension, where companies must be willing to share some information and resources while also safeguarding proprietary knowledge.