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Strategic Alliances
  Coopertition &
 Cannibalization



     Steven Rosenberg
        June 2009
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
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

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Strategic Alliances & Coopetition

  • 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