Businesses work hard to outwit their rivals and emerge victorious in the market competition. In fact, in the race to be number one and throw off the opposition, few stop to think of the positive effects of collaborating with the competitors.
Many are afraid that it would lead to the competitor gaining an advantage in the ongoing battle. However, with successful strategies, it might just be possible to create a win-win situation and build a better future for your business.
More and more companies are starting to accept that friendly competition instead of a cut-throat one is actually beneficial. A collaboration between two companies works because when two rival companies team up, they are looking out for each other to ensure that it profits their own selves as well. Consequently, not only do the two companies progress, but the industry as whole profits from the partnership.
The Top Ways It Can Benefit You
Here are a set of principles you can follow in order to have a successful collaboration with your competitor. Here are a few ways it can benefit you.
1. Have clear objectives:
Before entering into a partnership, have clearly focus on the goals of your business or organisation. These goals will help you decide the terms and policies you should have in your collaborative relationship. Always sign a two-way non-disclosure agreement before you initiate things, and do not forget that the main aim of this partnership is to take your company forward. Try to understand your partners’ objectives and how they plan to achieve their goals as it will help you improve your strategies as well.
2. Learn from your competitors:
There is nothing degrading in accepting that your competitors may know more about something than you. Working in close quarters with your rivals will help you understand how they work, and the reasons they implement certain strategies which might also help you in the long run. Of course, neither side is obligated to spill all their details. The knowledge that you stand to gain will help you apply new and improved skills paired with the latest technology to your business.
3. Don’t disclose everything:
Just because your company is in a collaborative relationship with another, it does not mean that you give away all your confidential information. Every company has secret data and specific technology at its core, which forms its backbone. Do not disclose them.
Instead, try to explore common interests which both the organisations can use for profit. All employees at each level must be made aware of the information that should not be traded to your competitors at any cost. This should be a strict policy even before signing the agreement. Always come up with a detailed plan and determine precisely what information can be disclosed and what should be considered off-limits.
4. Cross endorsement:
You can use your partnership to reach a target area that would not have been possible otherwise. If your collaborative competitor’s products are not directly encroaching on your territory and if you do not face the risk of losing your customers, you can advertise their products as well, often as add-ons. So, you can use this collaboration to expand your market with less money and in a shorter time span than it would have taken to do it alone.
5. It Benefits to go for collaborations
The short answer is anyone. There are no restrictions imposed. If you have a company and willingness, you are eligible.
While many business owners think that collaboration is a privilege that only big companies can afford, it is true that smaller companies have more to profit from it.
6. Helps You Learn From Other’s Mistakes
If you are a small company teaming up with a bigger and more powerful company, you will have a chance to learn from them and at the same time increase your credibility and reach in the market. It will also help you avoid investments, and you can use these funds for your company’s growth, which is the most important factor you should focus on. Money is important, but picking up new skills and tricks from your partner may prove to be more beneficial in the long-run.
While there might be conflicts arising from such partnerships, you need to keep the focus on the long-term profits and results. You should try and get the most out of such partnerships by strategically bring something new to the equation. Since you are no under no threat to have your own business compromised, the collaboration is workable. The history of business is filled with such examples where two companies have collaborate and emerged stronger for it.