The Business of Symbiosis

Photo by jean wimmerlin on Unsplash

In the business world, we often equate success with individual achievement by spotlighting visionary leaders or self-made entrepreneurs. If you look closer, however, you’ll see that a company’s success hinges on more than just one person but relies on a more complex system of interdependent relationships. It’s the interplay of those relationships that help a company succeed or fail. 

Interdependence is woven into the fabric of success and is fundamental to how our world works. Dog parents know this well. While Fluffy gets food, shelter, and affection, her owner gets companionship, protection, and health benefits like reduced stress and increased exercise. Both dog and owner benefit. (Cat parents can’t relate).

Scientists use the word “symbiosis” to describe these relationships and they are abundant in the natural world. Let’s draw a quick lesson from biology to explore what Mother Nature can teach business leaders about the delicate web of interdependence that underpins success.

When it comes to symbiotic relationships, there are three types: mutualism, commensalism, and parasitism.

Mutualistic relationships refer to the interaction between two or more species where each species benefits. These are win-win partnerships, like the bee who uses nectar to make honey while also helping the flowers reproduce. In business, mutualistic relationships fuel innovation, expansion and create value beyond what either entity could achieve alone.

An example of a mutualistic relationship in the business world is Apple and the electronics company, Foxconn. Apple depends on Foxconn's manufacturing abilities to produce its products. In return, Foxconn benefits from the steady stream of business caused by the high demand for iPhones and iPads. By partnering with each other, both companies have grown to dominate the market.

Commensal relationships happen when one species reaps benefits from another while the other species is unaffected. Like cattle egrets that get a free ride from bovines, only one party gains, but the other party is not harmed.

An example of a commensal symbiosis in the business world is the independent airport lounge. The lounge benefits from travelers seeking a comfortable place to wait while the airlines are unaffected by the lounge’s presence.

Parasitic relationships are those in which one species benefits and the other is harmed, such as mistletoe which drains the host plant of water and nutrients. Parasitic business relationships exist when businesses engage in unethical practices or exploit partnerships without providing value.

A parasitic relationship can be seen in those franchise systems that charge excessive fees or force franchisees to buy overpriced supplies. While the franchise gains revenue, it is nearly impossible for the franchisee to profit. While parasitic businesses may benefit, the gains are short lasting because their predatory practices lead to broken trust and damaged reputations. 

In nature, the interdependence of organisms means that the health of one species affects the health of others. If the bee population declines, it’s harder for flowers to reproduce and the ecosystem that depends on those plants suffers. 

Just like in a biological ecosystem, companies, products, and technologies of a business network are interwoven with each other. If those intertwining connections are strained or severed businesses trying to survive alone will have little value. For example, the software industry depends on hardware producers to deliver its product. In this mutualistic relationship, if either the hardware or software becomes obsolete the other entity also suffers.

That concludes our biology lesson for today. 

Next week we will talk about how an understanding of symbiotic relationships in business can make the difference between a thriving company and a drowning one.