Joint Business Development - How to Build a Startup

Summary

The video script discusses the strategic partnership model of joint business development and promotion, exemplified by Intel's innovative approach in the 1980s. Historically, computer chips were obscure components, but Intel revolutionized this by compensating PC manufacturers to display 'Intel Inside' on their products. This strategy transformed an unseen silicon piece into a recognized and valuable brand, fostering shared advertising and sales initiatives.

Takeaways

• 🤝 Partnerships for joint business development can involve joint promotion of complementary products.
• 🌟 One partner may be the dominant player in such collaborations, leading the promotional efforts.
• 💡 Intel stands out as a prime example of a successful joint business development strategy in the computer industry.
• 📦 Historically, computer chips were unseen by consumers and lacked brand recognition.
• 🔄 Intel revolutionized the industry in the 1980s by changing the way chips were marketed to consumers.
• 💰 Intel initiated a strategy of paying PC manufacturers to display 'Intel Inside' on the outside of computer boxes.
• 🚀 This move transformed the previously unknown silicon chip into a recognized and valuable brand.
• 📈 The 'Intel Inside' campaign involved sharing advertising dollars and sales programs between Intel and PC manufacturers.
• 🔗 The collaboration created a mutually beneficial relationship, enhancing brand visibility and sales for both parties.
• 🛍️ The joint promotion strategy effectively turned a technical component into a selling point for consumers.
• 📊 The Intel example illustrates the power of co-branding and strategic partnerships in building brand equity and market influence.

Q & A

What is the concept of joint business development mentioned in the transcript?

Joint business development refers to a partnership between two or more businesses to collaborate and develop new products or services, or to expand their market presence together.

What does it mean to jointly promote complimentary products?

Jointly promoting complimentary products involves two or more companies marketing their products together because they complement each other, enhancing the value proposition for consumers.

Why might one company be the dominant player in a joint business development partnership?

A company might be the dominant player in such a partnership due to its larger market share, stronger brand recognition, or more significant resources, which can influence the partnership's direction and strategy.

What is an example of joint business development in the computer industry?

The example given in the transcript is Intel, which changed the game in the 1980s by paying PC manufacturers to display 'Intel Inside' on the outside of the computer boxes.

How did Intel change the perception of computer chips in the 1980s?

Intel changed the perception by creating the 'Intel Inside' campaign, which made the chip, previously an unknown component, a recognized and valuable brand.

What was the significance of Intel paying PC manufacturers to put 'Intel Inside' on the box?

This move was significant because it turned the computer chip, which was previously unseen by consumers, into a recognizable and trusted brand, influencing consumers' purchasing decisions.

How did Intel's joint promotion strategy involve sharing advertising dollars and sales programs?

Intel's strategy involved sharing the costs of advertising and sales initiatives with PC manufacturers, making it a joint effort that benefited both parties in terms of brand promotion and sales.

What is the importance of branding in joint business development and promotion?

Branding is crucial as it helps create a unique identity and value proposition for the products or services being offered, making them stand out in the market and influencing consumer choices.

How can joint business development and promotion benefit both partners involved?

Both partners can benefit from increased market reach, shared marketing costs, and the ability to leverage each other's strengths to enhance product offerings and customer appeal.

What lessons can other industries learn from Intel's 'Intel Inside' strategy?

Other industries can learn the importance of making unseen or behind-the-scenes components valuable to the end consumer, and the power of joint promotion in building brand recognition and loyalty.

Can the 'Intel Inside' model be applied to industries outside of computer technology?

Yes, the 'Intel Inside' model can be applied to other industries where components or ingredients are not typically promoted to the end consumer but can add value when associated with a trusted brand.