Increase sales volume
It is difficult to produce and sell a complete range of products. For example, companies that specialise in supplying specific equipment may work with indirect competitors. If a customer places an advanced online order and wants to buy additional equipment or order-related products, they can buy everything in one place.
Toyota, which specialises in hybrid and petrol cars, goes out of its way to meet customers' needs and, if necessary, supplies them with parts from competitors Ford or Honda. By selling cars, safety or navigation systems from competitors, Toyota increases the turnover and sales of its dealers and global distribution network.
When two companies competing in the same market decide to pool their resources in a particular area, they usually reduce their costs significantly. They don't need to duplicate efforts in research and development, manufacturing and marketing. It is important to remember that it is easy to work together in this way if everyone starts on a level playing field. To avoid wasting time and money developing and testing new transmissions, Ford and GM decided to share their production technologies. But they decided not to develop the idea of a common diesel engine for pickup trucks. In the first case, the companies cut costs significantly. In the second case, they took no risks.
Cross-selling related products
Companies may offer their customers complementary products or services offered by their competitors. Apple and Samsung compete in the smartphone market, but sell phones and accessories through their mobile operator networks. This approach allows the tech giants to advertise and promote their products to different market segments. It also gives customers a wider choice of smartphones and communications plans.