Why Two Businesses Can Be Better Than One
Working with other businesses is a fantastic way of boosting the performance of your company for a number of reasons.
To explore this idea in more detail, we’re going to examine some of the real ways that two businesses can interact and make the most of a common goal or similar customer base.
Marketing as a Team
Let’s start by thinking about marketing and how two companies together can be a stronger force through promotion. When you’re setting up your marketing, you might want to think about uniting with a company that shares your customer base. An example of this could be a mechanic and a tyre supplier. Both sell to the same customers – car owners – but one provides a service and the other provides a product. As such, they are not direct competitors and can instead work together to achieve mutually beneficial results. The tyre supplier might be advertised on the mechanics website, for example, while the tyre business might recommend car owners to the mechanic for issues that can’t be fixed by replacing the tyres. As such, in cases like this, both businesses will be able to profit and make a lot of money from a shared customer base.
Providing a Better Service
You might also be able to use another company to provide a better service for your customers. Take the example of a software developer, providing software to business clients. When using software like this, clients want complete control of how they can use it and the type of tests they can run. With a self service BI, it’s possible for them to have this complete control. Software developers can use a secondary developer to embed this into their own product. In this case, customers are completely unaware that two companies are working together, but they still benefit from the results of this partnership.
Keeping Things Affordable
On occasion, two competing businesses may make a deal to keep things affordable and profitable for both companies. Price wars can happen in the market, particularly when a business thinks they can get a greater slice of the demand by slashing their prices. However, sometimes businesses agree to keep prices at a set point. By doing so, neither business drops below the cost they need to maintain profitability, and both benefit from their own market. It just shows that it’s not always in your best interest to go for the jugular of your competition.
Working Together For Charity
One of the last ways businesses can work together and gain a mutually beneficial outcome would be on a charity campaign. There are many examples of competing businesses coming together to provide support for charitable organisations. Both businesses benefit here because they each get the positive publicity for the campaign. As well as this, it is an occurrence that won’t affect the sales of either company and shows customers that both are willing to work together to make the world a better place.
It’s often said that two heads are better than one – and perhaps this rings true for businesses, too.