WHY IT IS GOOD FOR STARTUPS TO PARTNER
WITH INDUSTRY LEADERS
Nowadays it has become a common scenario that some particular industry
giant has taken over early budding startups to name a few Apple acquired Siri,
Facebook acquired Instagram, Google bought Android and so on. If you see
this statement of partnership between a huge venture and a small budding
company it might seem absurd and bizarre to you. You might think that why
would a big company say like Facebook would like to become partners with a
tiny enterprise that produces some apps well if you dig your head into the
matter then the picture you get to see is completely out of your imaginative
world the thing is all the startup ventures are looking forward to enter in the
industry via an innovation or bringing something new that the society is
demanding. In case they hit the right spot i.e. they come up with a product or
service that would prove to be a drastic life changer for the masses or would
be some sort of help for them which was not offered till date then your
startup would be in a state that could easily challenge any big venture and
might pose to be a threat for such big settled enterprises so the basic idea is
why to help grow an enemy when you can easily make friends with them!!
Interesting….isn’t it?? Let’s have a look at some quick points:
- As per reports more than 85% corporate hotshots have agreed that
collaboration between their organization and startups would bring a drastic
change in improving the level of success.
- These so called new entrants have the potential to pose serious threat to any
established market leader through their disruptive innovations.
- They pose this serious threat because they would end up coming up with such
an innovation that the existing market must not have ever thought of and could
take the market by surprise.
- On the contrary, big settled companies normally doesn’t venture into any
innovation as they have already settled up in the market with their products and
services so what they are more concerned about is maintaining that level or
standard rather than creating a new standard.
- The most basic drawback or limitation of any startup would be the availability of
funds and the level of experience. All they need to make their innovation a
success is uninterrupted funding and information straight from the horse’s
mouth. Both of them could be accomplished by being in partnership with the
industry leaders.
- Here the key to success for any big enterprise would be first to identify a
budding startup program that has got the potential to give a hard time to
them.
- Once identified they should be able to convince them to a point so as to
help the startups achieve their goal along with fulfilling your motives such as
promising returns, advancing your brand mission or in other words the key
would be to search for startups that are doing something which your
company might want to do in the near future.
- For instance :
· Facebook acquired Instagram, a photo sharing program just to be a
leader in the social networking industry and to add up more features to its
existing photo sharing facility.
· GM and Toyota couple with Uber to attain the sharing economy driving
app into their latest models in exchange Uber got the cars from these
companies to run on (Uber is the world’s largest taxi firm which owns no taxis
of its own!!)
- It is less risky for big enterprise to buy several new entrants in the market
rather then taking over a already settled good reputation company as it’s a
win- win situation for you as you can never end up in any major loss.
- The corporations have started realizing that now they need to break the decade
old corporate rules, their cultural barriers and go out in search of these local
communities which could prove to be a boon for them but this selection should be
done very carefully as you need to have the right talent to select only the real
pearl from the ocean.
So to wrap up my discussion I would only like to stress on the point that yes
corporations and startups are entirely different in all respects be it their economy,
the strategy, the methodology, the working speed, number of members in team
and so on but identifying and patching up with this distant relative of yours could
make wonders for you and your business. The key to success is careful
identification of the most beneficial and trustworthy partner since the market is
flooded with such small scale enterprises…….Happy Searching…Good luck !!
Article Resource - https://www.derekbluford.com/blog/why-it-is-good-forstartups- to-partner-with-industry-leaders