You will collaborate with your competitors.
It may come as a bit of a head-scratcher that one of the most popular tactics for brands to take on in the future is to collaborate with their competitors. You may ask, “why would you work with your competitor?” While this is certainly an unorthodox move, a meaningful collaboration provides an avenue for brands to pool their resources and up their investment to deliver more valuable products for their customers. For proof of this notion in action, take a look at rivals Mercedes and BMW’s recent partnership. These two archenemies put aside their differences at the end of 2018 to collaborate on vehicle platforms, electric car batteries, and autonomous driving tech. This union helps both brands mitigate the high costs of digital and technological development, ensuring that the legacy car manufacturers can continue to compete against more agile players. Competitor collaboration can not only help boost profits, it can also improve brand awareness, attract target audience, create economies of scale, launch in a new market, and so much more. All a result of the Business of Platforms -- a topic so near and dear to us that we host a podcast on the topic!
If Mercedes and BMW can set aside their bitter rivalry in the name of innovation, why can’t even the starkest of competitors leap over boundaries to collaboratively create value? It may sound impossible, but it’s the future and it’s coming at us at 90 MPH!