Cooperation can benefit businesses as much as competition

We regularly hear how good competition is for business. Economic theory tells us it encourages businesses to produce their goods or services more efficiently, to continue to improve in order to attract customers and grow market share and profitability.
Cooperation, though talked about far less often, can do every bit as much as competition to contribute to the success of any business.
Capricorn is a prime example of this. Our Members pool their collective power together. By working together, we create economies of scale that reduce costs and boost profitability, just as competition does. Collective membership enhances the individual.
We often hear the phrase “competition is healthy.” While this is true, competition by its very nature also involves friction.
On the other hand, cooperation has a natural advantage: trust. You’re working with other businesses, to achieve your common goals, in your joint best interests. There are many reasons for competitors to cooperate. At the simplest level, it can be a way to save costs and avoid duplication of effort.
Of course, in the automotive industry we actually see cooperation happening a lot. If a vehicle repair is too big or too risky for one repairer to manage, working together with another workshop may be the only option available.
So, general repair workshops often sub work out to a specialist repairer. Yet at other times these businesses may also be competing with each other for the same customer.
Cooperation is all about working together when it’s in your joint best interests — and it works most effectively when both parties feel they are receiving a benefit and risking nothing. That’s where the value is created.
Ultimately, getting the right mindset requires choosing the right people. Cooperating with your competitor doesn’t come naturally, but if you’re prepared to think differently and give the risks and rewards careful consideration, you may well get an edge over those stuck thinking only about the competition.
Cooperation is fundamental to Capricorn’s business model. If you’re interested in how Capricorn’s cooperation can help you build a stronger business, visit capricorn.coop to arrange a visit from your local Capricorn representative.
Yours in cooperation,
David Fraser
Group CEO – Capricorn Society Ltd

For more on Capricorn Society membership, visit www.capricorn.coop