Question

List three industries where cooperation among competitors is most likely and explain why

Answer 1

Three industries where co-operation among competitors is most likely are

1) Telecom sector

2) Logistics (Airlines)

3) Financial Services sector

Co-operation among competitors is necessary in order to keep the dynamics of the sector working well. It could be on account of technology, the delivery of the service / product, sharing of information or sharing of returns and risks where the scale of operations are key.

For Telecom sector, the subscribers (customers) may have taken the service of Mobile Company A, but they may need to connect / communicate with a subscriber who has subscribed to the services of Mobile Company B. In order for the service of connecting subscribers, the telecom companies need to have co-operation in order to inter-change and connect a call from one network (from Mobile company A) to another network (Mobile Company B). Therefore co-operation between competitors A and B is important for the sector to function well.

Logistics sector also works on co-operation between competitors given that the last mile connectivity and connectivity to the destinations of customers that originate a service request may not be catered within individual business needs. Collaboration can add more network, fleet, flexibility on time and offering on various service categories in areas where individually each competitor may not have the presence.  

Financial Services sectors co-operate by honoring basic banking and other related services to the customers from competitors. Example, using ATM machines of another bank, sharing the data on lending profile and defaults if any from a borrower,