You know who you need to fiercely
compete against and who you can
afford to cooperate with
Referrals It’s impossible for one company
to provide every product that all the customers in their area want. When people
come in asking to see the imported, hand-painted dishware that you don’t sell, you’ve
lost their business for that item. But you
won’t lose those customers if you point
them toward a store that specializes in
hand-painted dishware. They’ll think of
your store the next time they’re in the market for the products you specialize in.
Meanwhile, your competitor will be happy
to return the favour.
WHERE I T WORKS
“Coopetition works best among stores that
sell similar products, but also have their
specialties,” says Phibbs. You know who
you need to fiercely compete against and
who you can afford to cooperate with.
FACING THE CHALLENGES
In talking with other store owners about
coopetition, you may encounter disinter-
est, apathy and scepticism. Understandable.
“Most business owners don’t even consider
it,” says Bock. “We have this win-lose at-
titude about business, accompanied by a
lot of reference to sports and war.”
“It’s like showing your poker hand,”
says Eugene H. Fram, professor of market-
ing at the Rochester Institute of Technology
in New York. “Your competition gets to
know your operation in more detail, which
conceivably they could use to their bene-
fit.” How can you trust the store you’ve
been competing against for years? “You’re
taking a risk on something about which
you can’t predict the outcome.” But successful store owners must be willing to take
reasonable risks now and then.
GE T YOURSELVES GOING
“Limit your group to about three other
companies,” says Phibbs. “That way you’re
more apt to arrive at a unified vision.”
Call up your competitors and offer to
take each of them to lunch so you can dis-
cuss the possibility of working with them
cooperatively. “Have patience,” says Bock.
“Coopetition isn’t something you can sell
in one call or visit. It may take a dozen
meetings over the course of a year or two
before it gets rolling.”
Meanwhile, communicate often by
phone and email to keep the exchange
going, and to assure that everyone is aware
of and understands each other’s concerns,
intentions and actions. Once you’re all
clear about your roles, protect yourselves
with a legal agreement.
Regularly revisit your coopetition
goals, both long-term and short-term, and
make the necessary changes to encourage
your success.
In the end, coopetition may or may not
be for you. Whether the concept is compatible with your business or not, you can
learn a lot about your store – and your competition – in the process. And that’s always
a valuable thing, no matter what name you
give to it.
COURTING
THE COMPE TITION
Before you approach another
retailer with the idea of coopeti-
tion, properly equip yourself with
these suggestions
Adopt the right attitude
Instead of military or sports
lingo, think gardening. Like
flora and fauna, businesses
must cooperate in a shared
environment to survive.
Define your specialties
And those of your competitors.
Know what sets you apart
from one another.
Choose wisely
Consider stores with different
specialties within a 10-mile
radius to ensure you’re cooperat-
ing with a store within your
market area
Clarify your purpose
Know why and where you want
to venture into a relationship
of coopetition, and what your
long-term goals are
Embrace integrity
Your partners in coopetition
should be responsible, credible
and trustworthy – just like you
Involve all levels
Let everyone at your store
know that you are exploring
the concept of coopetition, so
they can take part and help
maintain continuity
