One aim of all organisations, irrespective of purpose, area of specialisation and type, is success, in whatever endeavour; and one of the ways to measure an organisation’s success is growth.
We all love success stories; stories of businesses that started from a corner shop to a mall, and to having branches all over the country. Such inspiring stories push us to to dream big.
Behind these wondrous stories are smart decisions. One crucial decision that most businesses make is to collaborate. Yes, they do, as no one really makes it without collaboration to some extent.
What it means to collaborate?
This is a situation where two organisations (companies, businesses) decide to pool resources together to achieve common goals or a particular objective. Sometimes, companies even merge into one hybrid organisation.
This practice has birthed great results, such that it is very much advised for organisations to collaborate.
Four ways collaboration aids growth
Increased customer base
When organisations collaborate, they get the opportunity to extend their reach beyond the normal set of people they would normally consider as their customer base. This has the added effect of turning probable competitors or people, who would normally have nothing to with certain products, into collaborators and in turn increase the profit margin of the organisation.
These days, there are different ways to the market, especially for a production company. People generally expect quality products at affordable price. This is very hard for production companies that get their production materials from various sources. Where there is a merger or a collaborative effort between such organisations, the immediate effect is that cost is cut and the customer can have quality products at a not-so-costly price range.
When organisations collaborate, they accelerate their growth process because they can move over small issues or challenges (it’s only after these collaborative efforts that one gets to see these issues as small) they would normally encounter to face the bigger picture. They can do this because they can move over their individual challenges in certain aspects by pulling resources together to solve those challenges more easily. When they overcome those challenges, they embark on much more advanced and technical challenges.
Formidability over competitors
Collaborations make organisations to immediately become much more formidable than their competitors. This is because they are able to pull resources together (finance, technology and even manpower), which usually will catapult them beyond their competitors’ reach or, at least, make them a more formidable opponent.
Organisations used to prefer to run on their unique features, perspectives and abilities. While many might have thought of this as principle, it was actually a limiting factor, which led to lots of lost opportunities.
The need for collaboration cannot be under-estimated, given that the world is now a global village, where individuals and organisations across the globe have to, as a matter of necessity, collaborate. It must not be a merger; it could just be joint effort by two or more organisations for a more efficient service system and reach.
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