Should I Partner with a Competitor?

The great Walt Disney once said "I have been up against tough competition all my life. I wouldn't know how to get along without it" which brings me to a question that one of my leading clients asked of me the other day; Should I Partner with a Competitor?

Great question...Yet, like anything asked within the Marketing domain, the answers are complex and unique to each type of situation. For some Executives, such a strategy is one of desperation and the idea of working alongside a competitor is just bad for business. Partnering with the competition? Are you kidding me? Well, I kid you not...there are some instances where it can actually add value to your business. At the end of the day, even the world's largest brands have their shortcomings and are limited to their core competencies, so if you are targeting the same audience as your competitors are, yet hold different market strengths, perhaps a Partnership opportunity is there.

Here is an example:

Borders - Amazon Online Store

Amazon sells books and so does Borders, yet Amazon are experts at selling online and Borders are experts at selling out of a storefront. Given that both brands target the same customers, yet are only great at selling to them via their core sales channel, why not consider working together to offer customers who buy in store an online option? Naturally, there are times when Borders customers (as loyal as they are) do not want to head out to a book store and would rather order their books on the Internet, right?

By partnering with Amazon, Borders can now promote that option to their customers without having to invest in their own online e-commerce platform and infrastructure. They can leave it to Amazon, because they already do a great job of selling online and Borders can benefit from a revenue-sharing relationship that ultimately, keeps their customers loyal, longer.

Sometimes, we are only great at one way of selling a product and can partner with another brand that is great at selling that same product another way. Why re-invent the wheel?

Here is a thought....Think back to the year 2000 for a moment. Did you ever think that you would see the day when a company like Borders would be partnered with the likes of an Amazon? I certainly would have never imagined such a thing. I guess the learning here is that we should all consider the concept of Partnering, even if it's with a competitor.