Types of Partners - How to Build a Startup

Summary

The script discusses various business relationship models, highlighting 'Intel Inside' as a joint business development, 'Starbucks and Pepsi' and 'Apple and record labels' as strategic alliances, and 'Apple and Foxconn' as a potential joint venture. It also touches on coopetition during fashion week and standards groups, emphasizing the GE-French manufacturer partnership for the CFM-56 jet engine as a prime example. The summary concludes with traffic partners like KAYAK and Expedia, illustrating how they profit from airline industry clicks. These examples illustrate the dynamic nature of business relationships in building companies.

Takeaways

• 🤝 'Intel Inside®' is a prime example of joint business development, where Intel exchanged advertising for prominent placement on computer boxes, benefiting computer manufacturers with higher gross margins.
• 🥤 Starbucks® and Pepsi™'s strategic alliance to promote Frappuccino® demonstrates how two companies can collaborate to create a new market offering.
• 🎧 The partnership between Apple and record labels, and potentially with Foxconn, illustrates the power of strategic alliances and joint ventures in driving innovation and market presence.
• 👗 Fashion week is an instance of coopetition, where competitors temporarily collaborate for the benefit of the industry, showcasing the potential of cooperation in competitive environments.
• 📘 Standards groups represent a form of coopetition where competitors unite to establish industry standards, highlighting the importance of collaboration for mutual benefit.
• ✈️ The CFM-56 jet engine venture between GE and a French manufacturer is a renowned example of a joint venture, blending elements of coopetition to create a successful product.
• 🛫 The partnership in the aircraft industry shows that even unlikely partners can achieve great success when they collaborate, underlining the value of joint ventures.
• 🔍 Online scheduling sites like KAYAK, Expedia, and Hipmunk act as traffic partners for the airline industry, earning revenue through clicks and ticket purchases, illustrating a symbiotic business relationship.
• 💡 The transcript emphasizes the blurred lines between different types of business relationships, indicating that they can evolve and transform over time.
• 🛍️ The various examples provided show that collaboration, whether through alliances, joint ventures, or coopetition, is key to business growth and industry development.
• 🌐 The script highlights the importance of understanding different types of business relationships to effectively build and grow a company in a competitive landscape.

Q & A

What is an example of joint business development mentioned in the script?

Intel Inside® is an example of joint business development where Intel exchanged advertising dollars for a prominent position on computer manufacturer's boxes, allowing manufacturers to gain higher gross margins.

What is the strategic alliance mentioned between Starbucks® and Pepsi™ for promoting what product?

The strategic alliance between Starbucks® and Pepsi™ was to promote the Frappuccino®, demonstrating a collaborative effort between two major brands.

Can you provide an example of a strategic alliance in the music industry as mentioned in the script?

The script mentions a strategic alliance between Apple and record labels, which was instrumental in the creation and success of digital music distribution.

How does the script describe the relationship between Apple and Foxconn?

The script describes the relationship between Apple and Foxconn as an example of a supplier, and at times, it might also be considered a joint venture.

What is the term used in the script to describe a situation where competitors cooperate for a common industry event?

The term used in the script for competitors cooperating for a common industry event is 'coopetition', exemplified by high-end clothing manufacturers during Fashion Week.

What is an example of coopetition given in the script?

An example of coopetition in the script is Fashion Week, where high-end clothing manufacturers, who usually compete, come together to cooperate for the benefit of the industry.

What role do standards groups play according to the script?

According to the script, standards groups are where competitors put aside their differences and work together towards a common goal of creating mutually agreed standards.

What is the most famous aircraft partnership mentioned in the script and what was its purpose?

The most famous aircraft partnership mentioned is between GE and a French aircraft manufacturer, which came together in a joint venture to develop the CFM-56 jet engine, a popular turbofan.

What is the role of traffic partners in the airline industry as described in the script?

Traffic partners, such as KAYAK, Expedia, and Hipmunk, serve the airline industry by directing online traffic to their sites. They make money by receiving payments from airlines every time a user clicks through to buy a ticket.

How do traffic partners generate revenue according to the script?

Traffic partners generate revenue by earning money from airlines each time a user clicks through their site to purchase a ticket.

What is the overarching theme of the script regarding business relationships?

The overarching theme of the script is that businesses can form various types of relationships, such as joint ventures, strategic alliances, and coopetition, to work together and build their companies.