Gaining a Competitive Edge With Co-opetition

Source: Accounting Today

This article discusses the benefits of “co-opetition,” in which competing firms combine their resources and expertise to obtain larger engagements, meet a client's needs more effectively, reduce costs, or otherwise gain access to work that neither firm would be able to handle profitably by itself.

Co-opetition also involves some significant risks: The firm you partner with could steal a client or employee or use information about your firm to gain a competitive advantage on future engagements. To minimize these risks, it's critical to find a partner you can trust, to share clearly defined objectives, and to have an exit strategy.

Also, it's important for the project to be well designed and executed. Otherwise, client satisfaction may suffer.

For the complete article, click here and select the article “Who Can Your Firm Trust?” under Practice Resources in the September 21, 2009, issue.

From Accounting Today, September 21, 2009, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.