{"id":10036,"date":"2020-12-07T10:00:30","date_gmt":"2020-12-07T09:00:30","guid":{"rendered":"http:\/\/passodue.flywheelsites.com\/?p=10036"},"modified":"2023-03-01T16:34:58","modified_gmt":"2023-03-01T15:34:58","slug":"manage-the-competitors","status":"publish","type":"post","link":"https:\/\/diariodiunconsulente.it\/en\/2020\/12\/07\/manage-the-competitors\/","title":{"rendered":"My best enemy: how to best manage the relationship with competitors"},"content":{"rendered":"<p>by <a href=\"https:\/\/diariodiunconsulente.it\/en\/about-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">Alice Alessandri<\/a> and <a href=\"https:\/\/diariodiunconsulente.it\/en\/about-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">Alberto Aleo<\/a><\/p>\n<p><span style=\"font-size: 18px;\">One of the most complex aspects of\u00a0<strong>market strategy<\/strong>\u00a0is managing\u00a0competitive relationships. The relationship with \u201crivals\u201d always feels harsh, especially when the very <strong>survival of our business<\/strong> seems to depend on the outcome of this \u201cfight\u201d. But is it really so? Does opening a window to competitors always mean giving up? <span class=\"text-highlight\">Is it possible\u00a0to <strong>collaborate<\/strong>\u00a0instead of\u00a0<strong>competing<\/strong>?<\/span><\/span><\/p>\n<p><span style=\"font-size: 18px;\">After all, the words competition and collaboration have a common origin. \u201c<em>Con &#8211; Petere<\/em>\u201d literally means moving together towards an objective, whereas \u201c<em>Con &#8211; Laborare<\/em>\u201d means working side by side. In both cases there is a \u201ccon\u201d (i.e. with) and an objective that link us to our fiercest rivals. <span class=\"text-highlight\">We all aim at <strong>increasing our markets<\/strong> and our <strong>growth opportunities<\/strong><\/span>. In the next paragraphs we will see how to achieve this \u201cthanks to\u201d and \u201cdespite\u201d the existence of competitors.<\/span><\/p>\n<h2><span style=\"font-size: 32px;\"><b>Widening the cake<\/b><\/span><\/h2>\n<p><span style=\"font-size: 18px;\">In an article we published some time ago, we talked about the <a href=\"https:\/\/hbr.org\/1996\/07\/increasing-returns-and-the-new-world-of-business\" target=\"_blank\" rel=\"noopener noreferrer\">increasing returns theory by W. Brian Arthur<\/a>, who compared markets to cakes: we can either fight to get the biggest slice or we can collaborate to make a big enough cake to feed everyone. <span class=\"text-highlight\">Who should we collaborate with? With our competitors!<\/span><\/span><\/p>\n<figure id=\"attachment_6401\" aria-describedby=\"caption-attachment-6401\" style=\"width: 854px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6401\" title=\"gestione dei rapporti di concorrenza\" src=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/Finding-your-competitors-and-the-importance-of-supply-and-demand.jpg\" alt=\"gestione dei rapporti di concorrenza\" width=\"854\" height=\"484\" \/><figcaption id=\"caption-attachment-6401\" class=\"wp-caption-text\">Istock Photo<\/figcaption><\/figure>\n<p><span style=\"font-size: 18px;\">If you are wondering \u201chow is it possible to cooperate with an enemy?\u201d, the answer is complex. Here is a summary of the three main points:<\/span><\/p>\n<ul class=\"check-list\">\n<li><span style=\"font-size: 18px;\"><span class=\"text-highlight\"><strong>Compete on value, not on price<\/strong><\/span>: study your rivals, try and understand what is different and unique in your respective offers and differentiate, consciously developing separate <strong>identities<\/strong>.<\/span><\/li>\n<li><span style=\"font-size: 18px;\"><span class=\"text-highlight\"><strong>Educate your customers<\/strong><\/span>: if the customers are informed and educated, they will be more capable of <strong>understanding the differences between competitors<\/strong>, concentrating their choices on the actual value and not on the price. Collaborate with your competitors so that customers receive clear information to help them decide.<\/span><\/li>\n<li><span style=\"font-size: 18px;\"><span class=\"text-highlight\"><strong>Build consensus<\/strong><\/span>: building synergies with your competitors will ensure that more and more people get to know and appreciate the market segment in which you operate, especially if you deal with a particular type of product or service which is still not well known.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 18px;\">Economic history is full of examples\u00a0of <strong>successful synergies among competitors<\/strong>,\u00a0which had positive effects for them and their customers. We at\u00a0Passodue,\u00a0for example, collaborate with several associations which bring together companies and professionals that are apparently competing, and help them cooperate to strengthen their image and\u00a0<strong>support the demand<\/strong>\u00a0for particular products or services. In recent years we have supported the <a href=\"https:\/\/www.associazionehomestaging.com\/\" target=\"_blank\" rel=\"noopener\"><strong>Home Staging Italian Professional<\/strong><\/a> Association \u00a0in their work to disseminate information about this new category of services dedicated to the real estate market, which is still not widespread in Italy though it is gaining success.<\/span><\/p>\n<h2><span style=\"font-size: 32px;\">\u201cDo your best in what only you can do\u201d<\/span><\/h2>\n<p><span style=\"font-size: 18px;\">Go back to our article dedicated to the\u00a0<strong><a href=\"https:\/\/diariodiunconsulente.it\/en\/2015\/09\/28\/analysis-of-the-offer-system\/\">Offer System<\/a><\/strong>,\u00a0to remind yourselves that what makes the difference is not one single element of the offer, but in fact it is the original mix of all the elements.<\/span><\/p>\n<hr \/>\n<blockquote><p><span style=\"font-size: 21px;\"><em>Educating the customers to look at the whole offer system means focusing their attention on the value of what is being offered, identifying the differences and avoiding the mere <strong>comparison of prices<\/strong>.<\/em><\/span><\/p><\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 18px;\">Imagine if a chef simply listed the ingredients of his dishes, instead of <strong>concentrating his clients\u2019 attention<\/strong> all the different aspects, tangible and intangible, that have contributed to create that particular result. Unfortunately that\u2019s exactly what we often do, cancelling the differences and trivialising the comparison with our competitors. <span class=\"text-highlight\">From the mix point of view, we can say that\u00a0<strong>no company competes directly with the others<\/strong><\/span>: there will always be at least one different element, and the people and their way of developing relationships will be different anyway. Being able to recognize the diversity of \u201cdishes\u201d requires \u201cgourmet\u201d clients: educating them should be the <strong>common goal<\/strong>\u00a0of all the competitors of a market!<\/span><\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6407\" title=\"clients\u2019 attention\" src=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/pexels-photo-92670.jpeg\" alt=\"clients\u2019 attention\" width=\"857\" height=\"627\" \/><span style=\"font-size: 12px;\"><br \/>\nPhoto by Albert Chernogorov<\/span> <span style=\"font-size: 12px;\">from Pexels<\/span><\/p>\n<h2><span style=\"font-size: 32px;\">A clear promise<\/span><\/h2>\n<p><span style=\"font-size: 18px;\">Once we have realized what makes us different from our competitors, we will be able to make\u00a0<strong>clearer promises<\/strong>\u00a0to our customers, and attract only those who are really interested in our products or services. As we have mentioned before, <span class=\"text-highlight\"><strong>the\u00a0\u201c<a href=\"https:\/\/diariodiunconsulente.it\/en\/2016\/07\/04\/law-of-attraction\/\">Law of attraction<\/a>\u201d\u00a0exists also in\u00a0marketing<\/strong><\/span>\u00a0and ensures that companies and customers are attracted to each other by similarity. To make the most of this affinity,\u00a0<strong>promises must be clear<\/strong>\u00a0to the market: <span class=\"text-highlight\">this means <strong>telling the customers\u00a0what we are good<\/strong> at\u00a0and which<strong> precise<\/strong>\u00a0needs\u00a0and\u00a0<strong>motivations<\/strong>\u00a0we can satisfy with our offer<\/span>, avoiding promising \u201ceverything to everyone\u201d. However there are so many companies that advertise themselves as \u201ctop quality, excellent service and very low prices\u201d. Can you believe that superior performance can match the lowest prices? It is evident that a promise like this aims at attracting more customers; however, in doing so, it loses its credibility and, worse, it risks disappointing the market. <\/span><\/p>\n<hr \/>\n<blockquote><p><span style=\"font-size: 21px;\"><em>The more honest and <strong>credible<\/strong> your <strong>promise<\/strong> is, the more <strong>personal<\/strong> and <a href=\"https:\/\/diariodiunconsulente.it\/en\/2019\/10\/14\/be-different-to-be-successful\/\"><strong>different<\/strong><\/a> from all the others it will prove, therefore helping you manage the <strong>relationship with your competitors<\/strong>.<\/em><\/span><\/p><\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 18px;\"><strong>Economic\u00a0competition<\/strong>\u00a0is not a zero-sum game and our\u00a0<strong>success<\/strong>\u00a0does not depend on\u00a0someone else\u2019s <strong>defeat<\/strong>. <\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-19712 size-full\" title=\"different\" src=\"https:\/\/diariodiunconsulente.it\/wp-content\/uploads\/2020\/12\/emergere.jpg\" alt=\"different\" width=\"1920\" height=\"1080\" \/><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 12px;\">Photo by Lucas George Wendt on Unsplash<\/span><\/p>\n<hr \/>\n<blockquote><p><em><span style=\"font-size: 21px;\">If we master the\u00a0<strong>relationships<\/strong>\u00a0and\u00a0<strong>strategies<\/strong>\u00a0with our competitors, we can\u00a0<strong>activate synergies<\/strong>\u00a0that will allow us to\u00a0<strong>differentiate our offer<\/strong>, <strong>educate our customers<\/strong>, <strong>make clearer promises and widen the market<\/strong>,\u00a0making sure that our role in it becomes better recognized.<\/span><\/em><\/p><\/blockquote>\n<hr \/>\n<p><span style=\"font-size: 18px;\"><span class=\"text-highlight\">Think of your competitors as rivals in love.<\/span> What is the best strategy to seduce your loved one? Fighting strenuously denigrating your opponents or bringing out your true\u00a0<strong>personality<\/strong>\u00a0so as to be appreciated and chosen consciously?<\/span><\/p>\n<p><span style=\"font-size: 18px;\">Some time ago, at the opening of an\u00a0<strong>IKEA<\/strong>\u00a0store in Boston,\u00a0<strong>Jordan\u2019s Furniture<\/strong> (another furniture manufacturer) papered the city with posters to welcome the Swedish multinational because it would contribute to raising the level of competition, therefore educating customers to design. What was the result? Both companies\u2019 stores in Boston are among the most successful in the entire United States. Thanks to their strategic collaboration and the organization of events and initiatives aimed at promoting the quality of life and the culture of living, both companies have achieved success\u00a0<u>(cit. R. Sisodia j. Sheth D.B. Wolfe &#8220;Firms of Endearment&#8221;).<\/u><\/span><\/p>\n<h3>\u2013 \u2013 \u2013<br \/>\n<em>And if anybody is thinking \u201cIt\u2019s impossible to collaborate with my competitors; they are totally disloyal!\u201d then differentiate from them and become, by contrast, the most honest: remember, ethics is one of the most appealing ingredients in markets that lack virtue!<\/em><strong><br \/>\n<\/strong>\u2013 \u2013 \u2013<\/h3>\n<pre>| partem claram semper aspice |<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>One of the most complex aspects of\u00a0market strategy\u00a0is managing\u00a0competitive relationships. Is it possible\u00a0to collaborate\u00a0instead of\u00a0competing?<\/p>\n","protected":false},"author":6,"featured_media":10037,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[92,86],"tags":[394,279,369,231,163,362,247,238,170,358,255],"class_list":["post-10036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-of-marketing-2","category-skills","tag-best-of-en","tag-market","tag-market-2","tag-marketing-en","tag-strategia","tag-strategia-en","tag-strategy","tag-success","tag-valore","tag-valore-en","tag-value","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Relationship with competitors &bull; Passodue<\/title>\n<meta name=\"description\" content=\"One of the most complex aspects of\u00a0market strategy\u00a0is managing\u00a0competitive relationships. 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