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Coopertition

Written by: Jim Bouchard

Article Overview: Today’s fun recession word is: COOPERTITION...

Coopertition

Today’s fun recession word is: “coopertition.”

Bath Iron Works and Ingalls shipyards are two of America’s leading shipbuilders and traditionally considered competitors. They will compete again in the future. Right now they’ve found a way to benefit both companies by working cooperatively.

Ingalls, owned by Northrop-Grumman found themselves behind on their LPD-17 class of amphibious transport dock ships. They gave BIW a call to work with them to complete this project, which came a particularly good time as the project will help keep BIW tradesmen on the payroll until its next project gears up.

According to the Times Record, BIW and Ingalls have partnered on other projects including the Arleigh-Burke class of destroyers and Ticonderoga class cruisers.

There is a time for fierce competition, and a time to put the gloves down. Large companies often cooperate on projects when the unique skills and resources of one company can complement the other. It’s often far more efficient and profitable to work together than to gear up an entirely new production line or duplicate facilities and manpower that may be underused at a competitor’s plant.

Can small businesses benefit from this example? Absolutely! By collaborating we can help each other weather the predicted recession and expand business in a growth cycle.

Small businesses in a particular sector can band together to do cooperative advertising and marketing to increase awareness and demand for products and services. Networking can provide good referrals within an industry sector, particularly when small operations make referrals to other companies who fill slightly different market needs within the same sector. Larger projects can bring traditional competitors together to fill a need that might otherwise go to a larger company.

One of the best ways to foster “coopertition” is through trade associations. I recently joined the Maine Association of Professional Consultants. This group is constantly developing networks and collaborations among consultants, speakers and trainers. The power of the wolf is the pack; people in this group who might traditionally consider themselves competitors form alliances and seek joint project, make referrals for one another and cooperatively promote the talents of all their members.

MAPC members have recently banded together to promote an event for Maine business people called Business Evolution 08. Scheduled for Wednesday, May 14th at the Hilton Garden Inn in Freeport, this event features presenters and trainers working together to present 15 sessions. By the way, for more information on this event you can call MAPC at 207-522-7900.

I recently interviewed William Patterson, founder of the Baron Series coaching and business mentoring program. William made his first million investing while still in college and has some very sound advice for preparing for a recession. (You can listen to the entire interview on a coming episode of my PowerPOD program at JimBouchard.org). A consistent theme throughout his advice was to start to prepare now, and to constantly look for potential partners for joint ventures and mutual promotion.

Think about how much energy you might expend to eradicate your competition, particularly in a time of uncertainty. How expensive might it have been for Ingalls to add production facilities and recruit skilled trades from BIW and other yards? They probably could have done it, but at what cost?

As I said, there is time to compete; fairly and fiercely. There is time to truly be “one with your enemy” and find ways to work together for mutual benefit, and ultimately the benefit of the consumer. As you brace for the possibility of an economic downturn, think about how you can use “coopertition” to your advantage, and the advantage of your competitors!

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Article Tags: amphibious transport dock, arleigh burke class, bath iron works, collab, cooperative advertising, destroyers, developing networks, different market, future right, industry sector, ingalls, larger company, lpd 17, maine association, northrop grumman, professional consultants, shipbuilders, shipyards, ticonderoga class cruisers, traditional competitors



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