Coopetition. Sleeping with the Enemy or Strategic Alliances? Mike Williams Senior Consultant GainingEdge
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1 Coopetition Sleeping with the Enemy or Strategic Alliances? Mike Williams Senior Consultant GainingEdge
2 Coopetition Working with your competitors?
3 Coopetition Companies work together for parts of their business where they do not believe they have a competitive advantage Business can gain advantage through mixture of competition and coopetition
4 Coopetition Cooperation with competitors, suppliers, customers and firms producing complementary products Common in automotive and computer industries where companies share components and save money on shared costs Oil companies share costs and resources on exploration and then compete after discovery was made
5 Coopetition Cooperation and competition are both necessary and desirable Cooperation to increase benefits to all players for market growth Competition to divide existing benefits among industry players for market share Interdependence on each other to achieve market outcomes From wholly owned resources to shared resources
6 Strategic Alliances A form of coopetition Voluntary partnership between companies whereby resources, capabilities and competencies are combined to pursue mutual goals while remaining independent entities. Motive to sustain long term competitive advantage Competitors working together to grow market share Complementors to expand product offering Alliances account for over 30% of Fortune 1000 company revenues When alliances are developed and operated using best practices the success rate is 75%-80% Can be used as a trial phase prior to joint venture, merger or acquisition
7 Strategic Alliances Benefits Enable competitive advantage though access to additional resources, markets, technologies, capital and human resources Enables partners to grow and expand faster Expand product and/or service offering Allow greater focus on innovation Knowledge and skills exchange SMEs to compete more effectively against bigger players Greater market penetration: Extend sales force and market reach Geographic expansion: globalisation Cost reduction through economies of scale Supply chain synergies
8 Strategic Alliances Forming an Alliance Define long term vision, mission and strategy Define scope of the alliance including level of commitment and resources Define expected outcomes & benefits Define the contribution & role of each party Define structure and operational issues to achieve results Protect your company s intellectual property rights within agreement Draw the line between competitive and non competitive activities Define how alliance will operate and be governed Be sure company cultures are compatible Relationship will depend on level of trust
9 Strategic Alliances Where to start? > Identify areas of common interest Coopetition Competition Destination promotion Research Product development Government advocacy Market intelligence Knowledge exchange Skill training & development Best practices Supplier referrals Competitive referrals Requests for Proposals Bids Sales Leads Product USPs Price
10 Alliances Convention Precincts Convention bureau partnerships Complementary products & services Alliances Global networks with local expertise Industry Associations Competitive Alliance
11 Case Studies Conventions Australia Cooperative marketing alliance Australia convention bureaus and centres Adelaide, Cairns, Darwin, Gold Coast, Melbourne, Perth, Sydney Advertising, website, case studies, promotions
12 Case Studies Singapore Our business event industry thrives on diversity and cross-industry partnerships that connect you..
13 Case Studies Singapore Alliance Development Singapore Exhibition and Convention Bureau Industry partners forming alliances International organisations wanting to establish presence in Asia DMCs, PCOs, PEOs, hotels and venues Singapore registered entities with 3 year business plan Minimum 2 industry partners not affiliated Promote only Singapore properties
14 Case Studies Kellen Company & CMA International Consultants Singapore Local knowledge and expertise Global network: Belgium, USA, China, Singapore, India Expand Asia Pacific operations Expand clientele Expand services to include association management, media communications, specialist travel, event planning, Government affairs Pool expertise
15 Case Studies Joint Marketing Alliance
16 Asia s Convention City JMA Service Partners 16
17 Case Studies Airline Industry 70 s air industry deregulation > partnerships to expand network routes 80 s code sharing where airlines could advertise other airlines as their own creating a larger presence 90s open sky policies liberalizing global air routes Late 90s over capacity > decline in profits > emergence of budget carriers > helped by internet boom New level of competitive awareness and fight for market share From 500 to 5 multi carrier alliances Main focus to expand geographic network So that a customer can fly to any major city worldwide: one ticket, one plan, global club rooms, coordinated schedules, product consistency
18 Case Studies Convention Bureau Alliances BestCities Global Alliance Energy Cities Future Convention Cities Initiative Est Brand, Services Standards, Business Development, Knowledge Exchange Berlin, Cape Town, Chicago, Copenhagen, Dubai, Edinburgh, Houston, Melbourne, Singapore, Vancouver Est Oil & Gas sector Cooperative marketing Aberdeen, Abu Dhabi, Calgary, Perth Est To use technology, innovation and research to increase the economic benefits Abu Dhabi, Durban, London, San Francisco, Seoul, Sydney, Toronto Thailand Convention & Exhibition Bureau and Seoul Tourism Organisation Est Bilateral MOU on promotion of MICE industry Government to government collaboration Promote Human Resource development, culture and economic relations Thailand, Seoul
19 Case Studies Convention Centre Alliances Global Congress Centre Alliance (GCCA) Cooperative sales and marketing Joint road shows Business lead exchange Event knowledge Training exchange Adelaide, Boston, Durban, Hamburg, Mexico City Seven Centres of Germany Est largest centres in Germany Marketing alliance Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, Munch, Stuttgart
20 Case Studies PCO / DMC Alliances INCON PCO, DMC, AMC Share best practices University: peer to peer education Global presence and local expertise Business referrals 11 partners in 36 countries, 75 destinations World s Leading Conference Organisers (WLCO) Conference management referral service Share information on previous conferences using central database Global sponsorship and exhibition connections Global event marketing network Argentina, Australia, Canada, Czech Republic, Netherlands, Denmark, United Kingdom World PCO Alliance (WPCOA) Sharing resources, knowledge, technology, training and best practices Business leads exchange Global reach & network Event promotion and marketing Australia, Brazil, China, Denmark, Egypt, France, Greece, India, Ireland, Japan, Malaysia, Singapore, South Africa, South Korea, Sweden, Taiwan, Thailand, UAE, USA
21 Case Studies INCON is a dynamic partnership of leading Professional Conference Organisers (PCOs) providing consistency and continuity in conference and event management. Global Presence Local knowledge
22 Case Studies Partnership of the world s leading conference, event and destination management companies Employer of staff globally Organiser of 10,000+ conference and event projects, serving 3 million delegates and procuring five million bed-rooms per annum An industry heavyweight with annual budget under management of an estimated 1 billion
23 Case Studies Education Annual University Annual Sales Training Annual DMC Training Leveraging the Alliance Marketing IMEX internet centre IMEX campfires Thought leadership Educational newsletter Best Practices Risk & Crisis Management CSR Green Meeting Policies Financial Management Staff training
24 Case Studies ASIAN CONNECTIONS 9 of Asia s leading independent inbound tour operators Representing 17 destinations Greater reach More options for multi stop itineraries Greater buying power Alliance network spans 5 continents One coordinating office
25 Coopetition & Alliances Where destinations and product can build alliances Coopetition Grow the market Win the business for destination first Competition Compete for market share Share the proceeds
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