Startups Stack Exchange Archive

Get in touch with your direct competitor?

posted by: Mruf on 2016-10-12
tagged: competition
score: 1

As a company grows, it’s service gets more and more known within its market.

Today one of our competitors tried to get in touch with us.

So I asked my self: Should a start up get in touch with it’s direct competitors?

Most People told me to always share ideas (independent of market or idea) with others, because the probability of something useful happening, is way higher. But with a direct competitor? Is there a rule of thump here?

What are the things to consider?

Answer 11325

posted by: Anonymous on 2016-10-12
score: 2

Your task is to identify why they want to talk to you. There’re could be various reasons - and this contact can turn out to be a good opportunity.

There’re several things come to my mind:

never go in any kind of (criminal) conspiracy which may give you short gain but can ruin your business - for example agreement on pricing, decision not to provide service to (potential) customers which want your service, etc;
do not share your business model, business plans or intellectual property. These are those which (may) give you competitive advantage;
always consider other stakeholders. If you meet with your competitor, what will your investors say? What will customers think? How it will be received by the market? Remember that eventually anything goes public, and do not do what you think is questionable, or consult with involved parties to get their view and at best support for your action.

In general - just listen. At any point of time you can stand up and leave if you do not like what is going on. Maybe you will be offered to sell your business, maybe you will be offered to set up joint research center - who knows?

Most People told me to always share ideas

If you want to share good idea - gather company meeting of people who may be able to influence its development and implementation - and discuss with them. You do not have to talk to any stranger about what you think. And you actually should not.

All content is licensed under CC BY-SA 3.0.