Cooperating is a useful strategy. Alliances are successful when like-minded players join together to create and capture additional value. Added value they could not achieve on their own. Greater speed and market penetration often result. This is because players do not have all the skills and strength needed to reach their goal, particularly if the players are young, less experienced or small.
Alliances have many benefits. In slow moving markets, interstate or global alliances offer freshly aligned players superior access to new (e.g. via a franchise) or restricted (e.g. via foreign partners) markets. In rapidly changing markets, strategic alliances create ‘expressways’ that allow for faster R&D, reduced risk and uncertainty, speedier market entries and early market leadership. In stable markets, alliances between large established competitors (e.g. Star Alliance and One World) can produce significant shifts in market power, scale and scope economies and political clout.
This month, HCG’s John Hale has been invited to be the Keynote Speaker at the Microsoft Innovation Centre in the Brisbane CBD, talking to the ‘Pride’ at the Expressway Innovation Network. Expressway is a large informal strategic alliance of commercially focused, like-minded entrepreneurial venturers, creating many alliance-like benefits for members.
For more information on the Expressway Innovation Network, please email RDA Brisbane CEO Margaret Blade firstname.lastname@example.org for details.