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This essay explores the importance of trust and human relationships in the business world, analyzing competitive and relational strategies respectively. While competitive strategies aim to maximize individual gains, relational strategies foster cooperation and the creation of sustainable partnerships. Examples from companies such as Patagonia, Ikea, Safaricom, and Tata demonstrate how integrating trust into your business model can bolster your reputation and economic performance. Trust is thus often essential for surpassing traditional competition, although it remains crucial to possess solid specific assets to develop jointly through innovation and cooperation.
E. Krieger
« Nothing personal, only business« : I have always been perplexed by this Anglo-Saxon adage that dismisses emotions to prioritize the intrinsic value of a transaction and the supposed cold rationality of the business world. This is precisely what prompted me to do a PhD in management science on the respective influence of trust and calculation in the evaluation of young innovative companies.
Beyond the quality or price of its offer, how can one be more competitive by also focusing on the business relationship? How can we surpass traditional competition and integrate the trust factor into our value proposition and business model?
Indeed, competitive and relational strategies are two distinct approaches in the field of business and interpersonal relationships.
Competitive Strategies and Relational Strategies
Competitive strategies emphasize maximizing one’s own gains, even at the expense of others. This may involve seeking a competitive advantage and gaining market share through:
- Competitive pricing: offering lower prices than your competitors will attract more customers.
- Rapid expansion: expanding rapidly in the market allows you to outpace your competitors.
- Innovation: launching new offers (products and/or services) sets you apart from the competition.
Relational strategies aim to transcend zero-sum game logic and are based on the development and maintenance of good relationships with other stakeholders. The goal is to promote cooperation and create sustainable partnerships. This includes:
- Cooperation: working together with other companies or individuals to achieve common goals.
- Open communication: aiming to promote transparency and communication to strengthen the relationship and avoid misunderstandings.
- Constructive conflict management: addressing disagreements positively and seeking mutually beneficial solutions.
Potentially Complementary Approaches
These two types of strategies are not mutually exclusive, and companies can combine several elements of them. A balanced approach, which recognizes the importance of relationships while remaining competitive in the market, is key to medium and long-term success.
Several companies have successfully applied relational strategies to build lasting partnerships, promote cooperation, and strengthen trust with their stakeholders:
- The outdoor clothing company Patagonia, renowned for its environmental commitment and social responsibility, has partnered with environmental organizations, suppliers, and local communities to promote sustainability. Its transparency in business practices and open communication enhance consumer trust.
- Furniture company Ikea has collaborated with local and international organizations to promote responsible sourcing. Its open communication with stakeholders and constructive conflict management have strengthened its trust capital and contributed to building its brand image.
Beneficial Effects on Reputation and Performance
- The Kenyan telecommunications company Safaricom has forged links with NGOs, government agencies, and local businesses to provide telecommunications services to underserved communities, but also to promote education and improve access to healthcare. This approach has bolstered the company’s reputation, which is significantly more profitable than its regional competitors.
- The Tata Group is also known for its commitment to sustainable development and corporate social responsibility in India. It has developed concrete partnerships with NGOs, academic institutions, and governments for educational, environmental, health, and economic development initiatives in communities. This approach has also helped consolidate its leadership in various markets.
Integrate more Trust in Your Business Model!
Across languages and cultures, these examples show how several companies have succeeded in applying relational strategies on different continents to build strong and lasting relationships with their stakeholders, thus ensuring the sustainability of their business.
When not symptomatic of alarming naivety, the bet on trust is often a winning one because it allows us to surpass the zero-sum game logic and enter the realm of self-fulfilling prophecies: if I trust you, you will likely give your best to honor that same trust. Conversely, if I make you feel my mistrust, you will resist and likely be reluctant to develop a lasting relationship.
Beyond innovation, which helps avoid head-on competition, relational strategies thus allow us to surpass traditional competition.
It remains essential, however, to possess distinctive skills and solid assets to develop jointly through innovation and cooperation and not be swept away by actors eager to impose unilateral rules of the game. Angelism has little chance of thriving in the business world.
It is now up to you to see how you can integrate more trust into your business model!
