Why don’t we cooperate?

Cooperation, I find, is tougher than competition. By default, every living individual has to compete. There's no other way. It's cooperation that takes a lot of doing. Cooperation is a choice. Competition isn't. If you choose to escape one competition, you invariably run into another. 

My Dad's into the natural stones (meant for flooring, wall cladding & construction) business. The market is almost like a perfect competition. Differentiation has been hard to build and market. Every city has a natural stones market and it's so perfectly competitive. But businessmen have survived, probably because of decent margins.

Businesses into natural stones have faced a stiff competition for many years from marketers of vitrified tiles – often known as flooring tiles (they are available in many types) or marbonite (for artificial marble and artificial granite). Vitrified tiles have many benefits and they are back by marketers with huge marketing budgets and a huge salesforce. They hire professionally qualified people. In contrast, a typical natural stone business might have on an average just about 20 people. Those too not very well qualified. To top that, there's no concept like a marketing budget in their business.

In my many discussions, people from natural stone business have expressed fears about the bad state of business. Every time, I've posed just one question. Why don't you cooperate with each other, form a joint stock company and take advantage of economies of scale? You could have more people to handle different responsibilities, more money to devote to marketing, could do with lesser inventory, could hire professionally qualified marketing force and so on…

Every time the discussion falls flat.

Similar situation can be seen in many many other types of businesses. Grocery retail for example. Perishable goods retail as well. Garment retailing. You can name them one after another. Small shops and vendors go out of business but rarely initiate a process of cooperation among themselves.

Cooperation need not be practiced only when life is at stake. Cooperation could be one of the biggest strategies for Indian small businesses to survive and flourish. Indeed, effort's needed but the result is a good life. A great life. Great example: Amul (Gujarat Cooperative Milk Marketing Federation Ltd.), the biggest cooperative movement of Indian business, arguably of the world business. 

A business program needed on cooperation.

One response to “Why don’t we cooperate?”

  1. Tushar Jambhekar- tujams Avatar
    Tushar Jambhekar- tujams

    Soni Saab, your idea of cooperation to gain advantage of price and uniting against a common ememy is not somethng new as you have rightly said. Problem in Cooperation is authority.
    One major global example- The allies united against Germany till 1945, but as the individual ideologies came up, the world was split again for the next 50 years.
    Same is the case with NDDC as well. Verghese Kurien is the man and the vision, but then why did Dhara as a brand go under ground till recent. It was built on the same platform as Amul, but the organisation was messed up in individual power plays after late 90’s. (Guess Allen D’Souza of MICOR can share the truth someday)
    Its has also been true in Maharashtra, where Sugar cooperatives came up in 1950. Yes they still function today but they have become fund raising grounds for the Chairperson of the cooperative.(Most of the Maharashtra legislature is full of these Sugar Barons)
    Cooperation and community association to achieve common goals is a powerful way to tackle problems common to all. Even street vendors set minimum prices at times to ensure less competition amongst themselves and a united front against showroom sales. But as we see in coalition politics, a Common Minimum Programme is always a tough cookie to crack.

    Like

Leave a Reply to Tushar Jambhekar- tujams Cancel reply

Your email address will not be published. Required fields are marked *


Discover more from morningboy.space

Subscribe to get the latest posts sent to your email.

Discover more from morningboy.space

Subscribe now to keep reading and get access to the full archive.

Continue reading