The strategy of working with rivals on projects of mutual benefit is called crowdsourcing.
True
False
The correct answer and explanation is:
Correct Answer: False
Explanation:
The strategy of working with rivals on projects of mutual benefit is not called crowdsourcing. It is more accurately referred to as coopetition or strategic alliance, depending on the context.
Definitions:
- Crowdsourcing: This is the practice of obtaining input, ideas, services, or content by soliciting contributions from a large group of people, typically via the internet. It involves the public or a broad group of people rather than direct competitors or business partners.
- Coopetition: A blend of “cooperation” and “competition”, this refers to rival companies working together on mutually beneficial projects. They might still compete in some areas but collaborate in others (e.g., technology development, industry standards).
Example to Clarify:
Imagine two rival smartphone companies, like Apple and Samsung, collaborating on developing universal charging standards. Though they compete fiercely in the market, working together on this project helps both of them reduce costs and improve customer experience. This is coopetition, not crowdsourcing.
On the other hand, if a company asks the public to submit logo designs through an online platform, that’s crowdsourcing—they’re seeking help from a crowd, not from rivals.
Conclusion:
The statement in question confuses two distinct business strategies. Crowdsourcing involves tapping into a large group of people, not necessarily competitors. Therefore, the correct answer is False, because working with rivals on mutually beneficial projects is not called crowdsourcing—it is more accurately called coopetition or a strategic partnership.