Friendly with Competitors

Allsquare Accountants Edinburgh discuss the benefits of being friendly with competitors in the world of business. Call for details on our accounting services

The presence of healthy competition is an essential aspect of the wellbeing of most organisations. Competition is important for a number of reasons.

Competition Is Necessary

Without competition, it is almost impossible for companies to establish their place within the markets. Understanding competitors and which services they provide is the first step towards identifying gaps in the market and opportunities for future growth and development.

Having competitors also enables customers to compare the different products and services available. This is an essential stage of the buying process and a way for customers to ascertain exactly what they want.

Take Time to Get to Know the Competition

Although it doesn’t always come naturally, it really does pay to take the time to build an amicable relationship with competitors. Rather than seeing them as ‘the enemy’ and making the assumption that because companies are operating in the same market they are offering exactly the same thing, they should instead consider if there are opportunities for collaboration.

There are many opportunities for networking, and investing the time to get to know individuals who work for similar organisations, either locally or further afield, is well worth the effort. Apart from sharing knowledge and skills and offering additional support, this gives businesses the chance to gain a better understanding of the industry as a whole and to achieve far greater objectives than they would otherwise. What’s more, by ensuring there is a strong relationship with competitors, it will be easier to recognise when they bring out new and innovative products or services or test new territories.

There are also a variety of other reasons to make friends with competitors.

As already mentioned, opportunities to work together can arise in a number of circumstances. There may be occasions when one company’s way of operating is not quite suited to their clients’ needs. In these situations, it’s good to be able to make suitable recommendations for alternatives. And when the recommended company also comes across a client with needs they can’t quite meet, they are likely to return the favour. Not only does this build a more comprehensive database of customers, but it is a great way to build a solid reputation as a company that has its customers’ best interests at heart.

One word of caution, however. When initiating projects such as virtual mergers and resource sharing, one of the primary considerations must be to ensure that the collaboration is genuine and sustainable. With this in mind, it is essential that organisations carry out careful research before entering in to any type of agreement.

If you would like support and guidance on important business decisions that enable your business to grow, call Allsquare on 0131 343 1510.