Growing up I fantasised of owning my own business and what excited me most about this was the idea of outsmarting and crushing the competition. As a youngman, I consumed a lot of American TV content, like Wall Street: Money Never Sleeps and There Will Be Blood – films that portrayed ruthless, sharp-witted businessmen who stopped at nothing to dominate their industries. I wanted that for myself and my future business ventures.
However, as I pursued a career in marketing and growth, my perspective changed. Lessons from business classes and real-world experience taught me that success isn’t just about crushing the competition – it’s about balance. While competition drives innovation, strategic collaboration can unlock even greater opportunities. Through meaningful partnerships, in my nascent career I have acquired tens of thousands of paying customers, boosted revenue, and improved customer retention—all by embracing collaboration with individuals and companies, including competitors.
In this article, I explore case studies of major brands – Apple and Samsung, Coca-Cola and Pepsi, BMW and Toyota – fierce rivals that have, at times, joined forces to drive growth and even support noble causes. These examples highlight how businesses can work with their competitors to achieve mutual success.
Collaboration between BMW and Toyota
This strategic alliance, which began in 2011, primarily focused on the joint development of fuel cell technology, lightweight materials, and sports car platforms.
Fuel Cell Technology:
BMW and Toyota combined their expertise to advance fuel cell technology, sharing research and development costs and accelerating progress. This collaboration allowed both companies to stay competitive in the evolving automotive industry focused on sustainable technologies.
By 2020, this collaboration had led to significant advancements in hydrogen fuel cell systems, helping both brands to position themselves as leaders in the hydrogen vehicle market.
Sports Car Development:
One of the most publicised outcomes of this collaboration is the co-development of sports cars. This resulted in the Toyota Supra and the BMW Z4, both of which share a common platform, engine, and various components.
Sales Figures:
Toyota Supra: In the first year after its re-release in 2019, the Toyota Supra sold approximately 2,884 units in the United States alone. By 2021, cumulative sales had exceeded 10,000 units globally.
BMW Z4: The BMW Z4 also saw a positive reception, with around 2,941 units sold in the United States in 2019, contributing to the global sales success of the model.
Benefits of the Collaboration
- Cost Sharing: By pooling resources for research and development, both companies significantly reduced individual costs, allowing them to invest more efficiently in innovative technologies.
- Enhanced Market Position: The collaboration enabled both BMW and Toyota to strengthen their market positions in segments where they previously had less presence (e.g., Toyota in sports cars and BMW in fuel cells).
- Shared Expertise: Each company brought unique strengths to the table (Toyota’s leadership in hybrid and fuel cell technology, and BMW’s expertise in performance and driving dynamics), creating a synergy that enhanced the end products.
Collaboration between Coca-Cola and PepsiCo
Another example of a successful collaboration between competing brands is the partnership between Coca-Cola and PepsiCo during the COVID-19 pandemic. This collaboration was aimed at addressing supply chain challenges and ensuring the availability of essential products.
Supply Chain Collaboration:
In March 2020, as the COVID-19 pandemic disrupted global supply chains, Coca-Cola and PepsiCo, along with other major consumer goods companies, joined forces to ensure the continuous supply of essential goods. They collaborated through industry coalitions such as the Consumer Brands Association (CBA) and the Food and Beverage Issue Alliance.
This collaboration involved sharing critical information, best practices, and resources to address transportation, manufacturing, and workforce challenges. The companies worked together to prioritise the production and distribution of high-demand products such as bottled water and soft drinks while ensuring the safety of their employees.
Joint Initiatives:
- Donations and Support: Coca-Cola and PepsiCo collectively committed millions of dollars to support communities and healthcare workers affected by the pandemic. For instance, Coca-Cola donated $120 million globally, while PepsiCo committed over $45 million to various relief efforts, including providing personal protective equipment (PPE) and financial support to frontline workers and food banks.
- Public Health Campaigns: The two companies also participated in joint public health campaigns to promote safety measures, such as social distancing and hygiene practices, through coordinated messaging and advertising efforts.
Benefits of the Collaboration
- Enhanced Supply Chain Resilience: By working together, Coca-Cola and PepsiCo were able to mitigate supply chain disruptions more effectively, ensuring that essential products remained available to consumers during the crisis.
- Improved Community Support: Their combined efforts in donations and public health campaigns amplified the impact of their contributions, providing significant support to communities and healthcare systems.
- Shared Knowledge and Resources: The collaboration allowed both companies to benefit from shared knowledge and resources, leading to more efficient problem-solving and innovation in response to the pandemic.
Collaboration between Apple and Samsung
The last example of a successful collaboration between competing brands is the partnership between Apple and Samsung. Despite their fierce rivalry in the consumer electronics market, these two giants have worked together in various capacities, particularly in the area of component supply.
Component Supply:
Samsung has been a key supplier of various components for Apple products, including memory chips, processors, and OLED displays. This collaboration has been essential for Apple to maintain the high quality and performance of its products. For instance, Samsung has been supplying OLED displays for Apple’s iPhones since the launch of the iPhone X in 2017. The quality and reliability of Samsung’s OLED technology have played a crucial role in the success of Apple’s flagship devices.
Financial Impact:
- Revenue for Samsung: Samsung’s semiconductor division has significantly benefited from its relationship with Apple. In 2020, it was reported that Samsung earned approximately $8 billion in revenue from supplying components to Apple.
- Product Success for Apple: The use of Samsung’s high-quality OLED displays has been a critical factor in the success of Apple’s iPhones, contributing to strong sales performance. For example, the iPhone 12, which also utilised Samsung’s OLED displays, saw impressive sales figures, with Apple shipping over 100 million units within seven months of its launch in October 2020.
Technological Advancements:
The collaboration has pushed both companies to innovate continuously. Samsung’s advancements in display technology have driven Apple to enhance its product offerings, resulting in better screen quality, battery life, and overall user experience for iPhone users.
Benefits of the Collaboration
- Mutual Financial Gains: Despite being competitors, the collaboration provides substantial financial benefits for both companies. Samsung gains significant revenue from its component sales, while Apple ensures a steady supply of high-quality parts for its products.
- Innovation and Quality: The partnership drives technological advancements and maintenance of high quality standards, benefiting consumers with superior products.
- Market Leadership: By working together, both companies reinforce their positions as market leaders in their respective domains, with Apple dominating the high-end smartphone market and Samsung excelling in component manufacturing.
These collaborations exemplify how competing brands can achieve significant success through strategic partnerships. For instance, Samsung supports Apple’s product innovation and market success by supplying critical components, benefiting financially from the partnership. The BMW-Toyota collaboration leverages each company’s strengths, shares costs, and co-develops products, leading to enhanced market positions, innovative advancements, and increased sales. Similarly, the collaboration between Coca-Cola and PepsiCo during the COVID-19 pandemic showed that competitors could come together for mutual benefit and the greater good, thus demonstrating that collaboration can lead to enhanced resilience, improved community relations, and a stronger collective response to global challenges.