About Co-Opetition

By | Tue, Sep 16, 2008

Archives: Business Building | Business Skills

The New York Post and New York’s Daily News – longtime rivals for subscribers in the same general area – blast one another every chance they get. But now, to cut costs, they are working together behind the scenes – consolidating parts of their businesses that do not affect editorial content (including distribution, printing, and back-office operations).

It’s called co-opetition – something you’ve read about before in these pages.

DHL and UPS are working on a similar collaboration. To maximize both of their profits, UPS will carry German-based DHL’s express-mail packages within the U.S. – and between the U.S., Canada, and Mexico – for a fee of up to $1 billion per year. The proposed 10-year deal takes advantage of the excess capacity UPS has in its American air-freight network, and saves DHL a significant amount of money on gas and overhead.

(Source: The Economist)

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