Competitor Relationships – Why You Should Be Developing Them, PART THREE

By: John Erickson – CEO of Credit Service Intl. – Content Editor of R.O. Hammer Companies

In this three-part blog series, we are discussing 1) Why you should be devoting time to developing competitor relationships, 2) the benefits of competitor relationships, and 3) how to develop competitor relationships.

Check out the first two articles of this series, 1st here and 2nd here. Now, let’s dive into the third article: How to develop competitor relationships.

In today's dynamic business landscape, fostering relationships with competitors can lead to unexpected opportunities and mutual growth. While it may seem counterintuitive, building strong connections with your rivals can benefit your business in numerous ways. In the first two articles of this series, we discussed the value of “coopetition”.

Let’s now dive into how you can develop and nurture these valuable relationships.

Here are some great first steps.

Embrace a Collaborative Mindset

Shift your perspective from a zero-sum game to a win-win scenario. Recognize that cooperation can often yield better results than cutthroat competition. This mindset opens doors to joint problem-solving and resource sharing, fostering an environment where all parties can thrive.

Leverage Social Media

In today’s digital age, it’s never been easier to make new connections. Utilizing professional social media platforms like LinkedIn to connect with competitors and stay updated on industry events and activities is an amazing advantage. Engaging with competitors' content, seeking direct connections, and sharing industry-relevant information to maintain a visible and positive presence in your professional network are great places to start.

Network Strategically

Attending industry events, conferences, and trade shows to connect with competitors is a great step. Take a proactive approach when seeking to benefit from the experience of others in your industry who are successful, or are dealing with issues similar to the ones you are facing. These events provide excellent opportunities to initiate conversations and establish rapport. Remember that this form of networking is key to gaining valuable insights and staying informed about industry developments.

Identify Common Ground

Start by recognizing shared interests and values within your industry. While you may offer slightly different services or have companies of different sizes, you likely face similar challenges and share a common vision for your industry. This foundation of mutual understanding can serve as a starting point for building valuable relationships.

Practice Respect and Professionalism

Treat your competitors with respect, even when competing fiercely for the same customers. Avoid negative behavior or trash-talking, as this can damage your reputation and credibility. Maintain a professional demeanor in all interactions to foster a positive industry environment.

Celebrate Competitors' Successes

Acknowledge and celebrate your competitors' achievements. Congratulate them on their successes and recognize their contributions to the industry. This generosity fosters a positive and supportive industry culture. This also demonstrates your humility and respect, which can help build stronger, more positive relationships.

Seek & Offer Referrals

If you are about to begin a project or looking to take on a new vendor, seek advice and referrals from your competitors and be ready to offer the same. This gesture of goodwill can lead to reciprocal benefits and strengthen your professional relationships.

Maintain Boundaries

While fostering good relationships, it's important to maintain appropriate boundaries. Avoid sharing sensitive financial information or proprietary details about your services. Focus on areas where collaboration and open communication can benefit all parties involved. Strive for a balance between competition and collaboration. While maintaining a healthy level of competition, be open to working together when it makes sense. This "coopetition" approach can lead to innovative solutions and industry-wide advancements

Closing Thoughts

Competitor relationships and “coopetition” are important. Start devoting time and energy to developing them, and you will see impactful benefits for your organization. It’s never been easier to develop these types of relationships, and leveraging social media is a great place to start. Don’t forget, these relationships are a two-way street. You get out of them exactly what you put into them.

Good luck out there!