Tip 15: Compete and Collaborate

Competition has always been there in business, and beating the competition (fairly of course) is part of the game. The current recession has impacted on competition in a number of ways. In some sectors it has become fiercer, as businesses chase an ever shrinking number of opportunities, particularly in areas where barriers to entry are low. In others, competitor failure has allowed some businesses to actually strengthen their market share, even if that market has decreased in size.

However, the recession has also thrown up a new possibility for many businesses, that of collaboration. This can involve providers of complementary services teaming up to provide a total solution to a customer’s needs, or it can involve businesses that provide similar services working together to create greater market awareness, and emphasise the benefits they offer to clients.

Please note that we are talking about working together in an open and transparent way. We are not talking about any form of collusion or agreement not to compete. This is illegal, and could lead to serious consequences.

Competition is a key component of business, and is often the driver of new and/or better value products and services for customers. Sometimes though, by collaborating rather than competing, businesses can actually create bigger markets and better opportunities for themselves.

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