Co-opetition

Can you be #1 in every business line and all segments?

It is very difficult to do. You have limited resources and other competitors might have a head start or some level of strategic control. In addition, in these times, disruptive technology can make it difficult on the industry leaders, i.e., it is hard enough to stay ahead of the competition in the markets you are strong.

This is why some successful firms are turning to co-opetition whereby do you really need to be #1 at everything or is a better strategy to partner with someone who can serve a niche that is difficult for you to penetrate. The surprising thing is that more and more partners are actually competitors. Oh no, dog and cats living together, no way!

I have always had a view that when it makes business sense it might be the right decision to partner with a competitor. Yes, this means conceding a segment but they might just be better at that segment. Following this strategy, it could prevent additional competitors from entering the marketplace. If the partnership works well and best interest for the shareholders, co-opetition could lead to a merger down the line

Instead of fighting an uphill battle in a particular marketplace, you may want to partner with a competitor and then place your resources on areas that have a higher possibility of return and specific areas of strategic control (you have a captured customer based). Remember, don't continue to beat her head against the wall if there is a door a few steps away. Some times, your enemy could be your best friend.