The document discusses the importance of strategic alliances in enhancing market share and brand value, outlining potential internal conflicts arising from perceived competition and cannibalization of sales. It emphasizes proactive communication and management to address these conflicts effectively and proposes specific metrics to measure alliance success. Immediate action steps are recommended when conflicts occur, including investigation, open discussions, and potential termination of alliances if cannibalization of sales is confirmed.

1. Strategic Alliances
Coopertition &
Cannibalization
Steven Rosenberg
June 2009

2. Alliances Coopertition &
Cannibalization
A successful alliances program can be defined as leveraging
complimentary alternative third party applications that utilize one’s
content to penetrate customers, increase market share, and grow
brand value.
Internal conflicts with specific alliances will arise, leading some to
believe that these “partners” compete directly with one’s own
products and strategy, therefore creating a sense of cannibalization of
existing sales.
The buy in and embracement of appropriate potential alliances and
their commercial proposition by segment business owners, along with
controlled terms & conditions will lead to a successful alliance
program and mitigate future conflicts of interest.
Confidential June 2009 Steven Rosenberg

3. Alliances Coopertition &
Cannibalization
Through past experiences, following detailed tactical and commercial
processes, most issues of sales conflicts and cannibalization can be
managed resulting in coopertition.
Proactive sales management communication:
•Weekly meetings with sales leadership team to go through progress of existing alliances and pipeline of potential partners.
Sales •Educate sales on how existing and prospective partners add value and facilitate new data sales thru partner applications.
•Lead generation thru partners.
•Education of partners application and business model.
Specific factors must be created that measure the true success of the alliance:
Partner
•Additional datafeed sales tracked to specific partner by client and # of users detailed by partner provided report.
Success •Regular internal reports measuring clients and users tagged by parters.
Factors •Client wins over Competitors/ Displacement of current vendor of choice.
•Increased market awareness via trade shows, publications and press.
When specific conflicts arise action must be taken immediately:
•Investigate and determine If partner’s application is truly cannibalizing existing sales. Why? Is it a pricing or functional issue.
Conflict •Determine commercial conflict issues i.e. were there commercial terms of agreement that were broken? If so, take action.
Resolution •Explain to partner that the alliance was entered in to facilitate growth of both partner’s application and data provider sales and
stress the importance of a true partnership is not to compete against each other.
•Facilitate an open discussion between partner’s executive management and internal management on how the success of the
partnership actually increases data feed sales.
•If cannibalization truly does exist then terminate alliance along agreement terms (Date of agreement).
Confidential June 2009 Steven Rosenberg