Collaboration Between Companies Through a Trade Association

By nature we have been raised to be more competitive. Starting at early ages, we want to get better grades in school, win sport games, be successful at our jobs and the list continues. However, in business world we see that companies are trying to work together as well as consumers so they can achieve better results. Let's be realistic! Small or medium-sized businesses do not have the large companies' resources and if they want to compete in the market, they need to bring their resources together.

Collaboration between companies is not just for large companies. Nowadays, many small and medium-sized companies try to use it as an advantage to their businesses. Collaboration between suppliers, customers, vendors, employees or contractors can bring a competitive advantage to companies who have learned to work closely. Collaboration should be defined as a second nature within small and medium-sized companies which share same interests. In short "Collaborate with your competitors and win!"

Let's explain what collaboration is. Collaboration is a strategic partnership between two or more companies with the goal to provide mutual benefit for each company. Of course you should always remember that collaboration is a double-edged sword. It has its benefits, but you may also lose a lot if you are not careful. Sharing the resources of knowledge and knowledge between companies is an intelligent strategy as long as it would be a win-win situation for all parties and it should not compromise either party's competitiveness in the market.

Some companies may be concerned that competitors may steal their knowledge and secrets and use them to their own advantage. But collaboration through Trade Associations is often beneficial to involved parties. Parties will contribute what they know and will learn "Need to Know" options from other companies and in this way they will achieve additional options which would not have been possible otherwise.

But What Are the Advantages and How You Can Do It?

The best way of collaboration is through Trade Associations. Trade Associations are established institutions and offer many tools and services to facilitate this matter which helps companies to make better decisions and be more competitive. Trade Associations bring firms with smaller resources together and let them to play a major role as a group. By doing so there are many practical benefits for such businesses.

• Lower Labor Cost

By collaboration you would be able to connect and manage skilled labors around the world

• Higher Quality

You will have a better opportunity to serve your customers by bringing them in product development and improvement process

• Innovation and Creativity

By having like-minded businesses around, you will have access to valuable sources of motivation, inspiration, support, ideas, experiences and skills along with higher level of competence, which will make you more competitive and helps you to serve your customers better.

• Less Expense

There are so many technological products such as online conferencing for video meetings and clouds to exchange files, which can facilitate communication and exchanging information between you and your partners quickly and securely. By eliminating some of the expensive costs of communication such as travels, you will have higher profit margin.

• Higher Customer Satisfaction

Collaboration with your partners will increase their satisfaction and you will earn their loyalty.

• Higher Revenue

Faster response to opportunities will bring more revenue to your company.

• Effective Supply Chain Management

Through access to information of customs data, products, deliveries and orders, you improve the ability to manage your customer's needs. As a combined group you will also have the power and opportunity to negotiate with suppliers to receive prices typically reserved for larger firms.

• Faster Responses

You will have the opportunity to reduce response times to your customers' demand and this will increase your competitive advantages in the market.

• Lower Production Cost

By increasing the ability to work closely with customers and suppliers on different aspects of product specifications, services such as packaging, quality and delivery will avoid mistakes and its costly consequences and eventually will lead to higher market share at lower costs.

• Smart Decision Making

When you are collaborating with other companies you have the advantage of access to more reliable information and accurate data. Insights and a closer look into partners' strategies and business will improve your decision-making process and will help you to choose wisely.

• Smooth Running Company

With less bureaucracy and by building more relationships, employees and management will interact more and as a result, productivity and creativity within the organization will increase.

• Networking

There is no question that referrals and connections will drive more business to your company. Using these relationships through Trade Associations will bring a wider pool of opportunities to your business.

• Effective Employees

Another advantage of collaboration through Trade Associations is the ways that employees can enhance their networking abilities in order to build more relationships.

• Better Results from Marketing

By joining forces through Trade Associations you will increase marketing options for your products and all involved companies will reach to wider target markets and new audiences.

In short, by joining forces through a Trade Association and converting a competitor to a partner, companies will have the opportunity to attract more customers and improve their place in the market.

You can get more information and find comprehensive list of Trade Associations and Chambers of Commerce at http://www.Tradorf.com/