Create links with your competitors

The relationship with competitors has traditionally been seen as an unrelenting rivalry, with each company fighting to gain the upper hand and stay on top of the market. However, in recent years, a new perspective has been gaining ground: the creation of links with competitors. This strategy, known as "coopetition," is an innovative way of approaching competitive relationships.

In this session, we will explore the benefits and challenges of establishing closer relationships with competitors and how this innovative tactic can drive business success.

Building ties with competitors can be a controversial strategy, but in certain contexts, it can offer benefits for the companies involved. One tactic commonly used to achieve this is "coopetition," which combines elements of cooperation and competition in a business relationship.

Cooperation with competition provides the opportunity to access resources or skills that complement one's own. For example, two rival companies could collaborate to share electric vehicle technologies, advancing faster and reducing development costs through mutual knowledge.

In coopetition, companies can undertake specific actions to achieve mutual benefits. Some of these actions include:

• Co-marketing and joint promotions: They can collaborate on marketing campaigns or promotions to increase the visibility of their products and attract a wider audience.

• Form consortia for large projects: They can join in consortia to bid for and carry out large and complex projects, sharing risks and resources.

• Set standards and regulations: They can collaborate to establish quality standards or industry regulations that benefit all companies involved.

It is important to note that, while these approaches can create opportunities for competitive linkages, it is essential to be aware of the associated risks. One of the key challenges is to ensure the protection of confidential information during collaboration.

Maintaining a balance between sharing knowledge and safeguarding sensitive data is critical to avoid leaks that compromise companies' competitive advantage. If the boundaries of collaboration are not properly managed, the company risks losing its competitive advantage and allowing competitors to benefit from its expertise.

There are some ways to create linkages with competitors that do not involve direct coopetition. Some alternative approaches are:

• Collaboration on external projects: companies can collaborate on external research and development projects, funded by government or private entities, to work on specific areas without competing on all aspects of the business.

• Participation in industry events and conferences: Attending industry events or conferences pr