Collaboration is not something new in business. Most collaboration happens because the parties involved feel connection or same goals. With the same vision, it is easy to make collaboration. However, have you ever thought of collaborating with your business competitors? It is not so pleasing to hear because ‘competitors’ mean your ‘rivals’ which means you should compete each other to prove who’s better than another.
Collaborating with business competitors
Collaborating with competitor is not actually new in business. People has already had the term for it which is called ‘coopetition’. It refers to collaboration specifically between business competitors. Lots of people worry about the risk of clash and betrayal when it comes to collaboration with competitors. It sounds so daunting so that’s’ why not all business owners are brave enough to take this decision.
However, there have been studies that showed the advantages of this type of collaboration which outweigh the disadvantages. This type of collaborative competition has higher chance to reduce company costs more than a 50%. However, the percentage is possible if the collaboration itself can last to three to five years or more. What’s the reason?
Reduce Business Expenses
Business professor and experts state that the best partner might be your direct competitors nowadays. It is because competitors face the same problems and struggles in the industry so they use similar technologies and resources. They tend to face similar challenges in general. That’s why collaboration can be a great solution that can help them reduce the cost of their business expense such as in the matter of product development, innovation, and manufacturing. Collaborating in those areas can help them save their money from excessive spending.
Join Forces to Face Challenges
Collaboration might be a contemporary idea but if it’s been proved to be advantageous to do. It might be hard to accept the idea. However, it won’t be a problem if you try to be more open-minded with the idea. Running business means you have to use your logic more instead of personal feelings. Just because you have competitors doesn’t mean you can make successful collaboration. Basically, you and your competitors face similar things in general such as product development, manufacturing, etc. It is a great start to join collaboration because you can join forces to find effective solution.
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A Win-Win Solution for All
Another reason of why collaborative competitors have high chance to success is that because the main principle of partnership itself is win win situation. Thus, there is nothing wrong with collaborating with your own competitors as long as it benefits both parties. Of course, this type of collaboration also has its own arrangement. However, every arrangement can be set by both parties to create peaceful harmony during the collaboration period.
It’s Not A Must
However, it is also important to remember that collaboration is optional not obligation. When you find it useful, you can do it. You can also choose which parties you want to collaborate with. Collaborating with your business competitors is also optional. Most business owners choose it as a last resort but try to not close your mind to the idea because it might benefit you someday.