Question

The local real estate companies in a city have joined together and arranged a "Property Fair." The expenses of the event will be shared equally by the sponsors. Though many companies compete against each other, they have joined together because the medium will help the companies market themselves through a dedicated forum at an extremely low cost. This arrangement is best referred to as:

• merging.
• bootstrapping.
• co-opetition.
• a cartel.

Answer 1

Answer: Co-opetition

Explanation: Co-opetition can be defined as an arrangement between competing firms to cooperate on a specific project or in certain areas of business for mutual benefit while remaining competitors in general.

The firms enter into the agreement with the expectation that the isolated cooperation will lead to greater overall returns for each firm.

This tactic is thought to be a good business practice between two or more businesses because it can lead to the expansion of the market and the formation of new business relationship among them.