Note: Running Fridays in FromGregsHead.com, is a continuing series of tips brought to you by Greg Price. These run Sunday evenings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the PKF Texas – Entrepreneur’s Playbook® page of the PKF Texas website.
What is your relationship with your competitors? Do you fight tooth and nail over every prospect, or is there room for friendly cooperation and pooling of resources?
These days when companies are trying to alleviate costs, one alternative may be to work with your competitors on select projects, splitting costs and resources.
The term Co-opetition was coined by Yale professor, Barry Nalebuff, to describe such arrangements.
There are many benefits if the partnership is structured correctly. Exposure to new customers, added resources for joint ventures, and addition leverage all come from co-opetition. Does your competition provide a service that would benefit your clients?
One example cited in Canada’s Financial Post, is how movie studios compete at the box office yet share equipment, props and studio space. For example, American Idol airs on and is produced by FOX, but is shot at CBS Studios.
When looking to improve your business don’t forget to look at your competition.