Which term describes a company that provides a service that enhances the value of another firm's offering?

A complementor is a company that provides services or products that enhance or add value to another firm's offerings. This relationship is crucial in strategic management as it highlights how businesses can benefit from strategic partnerships that enhance their overall market proposition. For instance, a software company that creates applications designed to work seamlessly with hardware from another firm serves as a complementor. By providing tools that improve the usability or effectiveness of another firm's product, complementors can create a symbiotic relationship where both companies benefit from increased customer satisfaction and expanded market reach.

In contrast, competitors are firms that vie for the same market share or customer base, directly affecting each other's profitability. Suppliers provide raw materials or components required to produce a company's products, while collaborators usually refer to partners working together on projects, which may not specifically enhance the value of another firm’s offerings. Thus, the role of a complementor is particularly unique as it focuses on enhancing the existing value of another's product or service rather than competing or simply providing components.