Written by: George Staikos, Boundless Business Consulting
In many consulting engagements, competitive analysis isn’t just about mapping rival products or pricing. A surprisingly powerful outcome is when it opens the door to reimagining competitors as potential partners or channels. For SMEs, particularly in constrained markets, this kind of ‘out‑of‑the‑box’ thinking can unlock reach, reduce acquisition costs, and accelerate growth.
Why Look at Competitors as Partners?
This notion of co-opetition, cooperation between competing firms, may seem counterintuitive. Yet, as noted in the Harbord Business Review’s (HBR)podcast “When Collaborating with Competitors Makes Sense,” strategic collaboration can yield mutual benefits when properly structured. Yale University’s Barry Nalebuff (co-author of the book Co-Opetition) calls it a tool to unlock value neither party could produce alone. [Source: HBR Podcast]
Out in practice, strategic partnering or channel alliances can help a company scale coverage, address non-core segments, and leverage complementary capabilities. As Simon‑Kucher & Partners has argued, collaborating with productive channel partners can help businesses expand their presence in markets or segments they don’t fully support internally. [Source: Simon Kucher]
Five Tactical Moves That Emerge from Better Competitive Analysis
1. Channel Extension via Shared Reach
Suppose a competitor has deep relationships in a geographic region where you don’t. Instead of competing head-on, consider offering your product or service through their channel (or vice versa). For example, a small software company might team up with a hardware vendor that trades in the same vertical to bundle solutions.
2. Segment Divisions (Non‑Overlap Collaboration)
Competitors often leave gaps. One firm might focus on enterprise clients; another might focus on small- to medium-sized businesses. You might partner by agreeing to ‘territory segmentation’ or cross-referrals. This kind of segmentation aims to avoid direct cannibalization while maximizing reach.
3. White‑Label or Original Equipment Manufacturer (OEM) Relationships
Sometimes, a competitor is willing to sell your offering under their brand or incorporate your solution as a module in theirs. This transforms a direct competitive threat into a revenue channel.
4. Joint Go-To-Market or Bundling
Another approach is to collaborate on joint marketing, packaging, or bundles. For example, firm A offers service X, firm B offers service Y, but together they offer a ‘suite’ for a vertical. This can make sales easier and reduce friction. [Source: The Butterfly Effect]
5. Data or Infrastructure Sharing (Co-opetition R&D)
In certain industries, competitors collaborate on platforms, standards, or shared infrastructure. In open-source and tech sectors, this is not uncommon. Firms pool common data, R&D, or platform maintenance to reduce risk and cost.
Risks & Guardrails You Must Manage
Competition Law / Antitrust: Collaborating with a competitor could trigger legal risks, particularly around pricing or market division. Global law firm Norton Rose Fulbright outlines top channel strategy risks in competition law. [Source: Norton Rose Fulbright]
Alignment & Incentives: A competitor’s interests may shift. Carefully structure incentives, performance clauses, and exit options.
Brand Dilution & Customer Perception: Make sure the partnership doesn’t confuse your customers or undermine your brand.
Control & IP Risk: When collaborating on infrastructure or data, safeguard your unique assets and agreements.
Final Thought
Many SMEs lack the resources to build full geographic or customer segment coverage, especially in competitive markets. Partnerships with perceived competitors, when approached with strategic clarity and legal discipline, can create tremendous leverage. In today’s volatile markets and trade turmoil, co-opetition not only offers growth but also builds resilience.
By looking at your competitive landscape through a channel lens, you may just uncover your next breakthrough growth strategy.
