So, this is my first time writing a “thought piece”. Does the world need another one? Does it really help? Does it make people jump off their chairs and start doing things differently? I don’t think so.Because we do not need more opinions – we need more stories. Inspiring and exciting stories that make people want to share, discuss and make their own.
This is not another thought piece. I’d like to tell you a story that you might find interesting, when you are having a look at your current revenues and sales and wonder: COVID has hit us hard – what shall we do? Or, maybe you just believe that now is the time to strike and tap into new business opportunities like we do at Avantgarde. Let’s find out!
We all know that we are currently living in unpredictable and challenging times. But at Avantgarde we like to see the current situation as an opportunity from a business perspective to do things differently. An open window to not downsize business, but to tap into opportunities based on strong strategic alliances.
A recent study commissioned by Impact and conducted by Forrester Research revealed that strategic partnerships contribute to 23 percent of overall company revenue on average. The study also highlights that mature companies are 4x more likely to strongly agree that partnerships are instrumental to their competitive advantage. That being said, collaborations are a proven tool for driving revenues and business success as a whole. We at Avantgarde believe now is the time for organizations to join forces and exploit market openings, with mutual benefits for all parties involved through partnerships. But how do collaborations work?
A strategic partnership or collaboration is all about working collectively towards a positive and mutually beneficial goal. Strategic partnerships can vary from co-branding initiatives like Louis Vuitton and Riot Games for the League of Legends championships and tech-alliances such as Google Cloud and Apple iCloud to new product developments like Uber’s and Volvo’s self-driving cars.
Louis Vuitton and Riot Games for the League of Legends championships
Photo Credit: Louis Vuitton
Uber’s and Volvo’s self-driving car
Photo Credit: Volvo
All of these examples work towards one mission for success: to make use of resources and expert knowledge in the most efficient way, while tapping into new business opportunities together and drive new revenue streams. The benefits from such strategic partnerships are tremendous: Within just three years, Volvo and Uber were able to unveil their first self-driving car. The Louis Vuitton League of Legends capsule collection was able to make the game more attractive and accessible for female gamers, while Louis Vuitton gained access to a whole new target group and opened up a new revenue stream by selling in-game designs.
There is a reason why Forrester and Impact revealed an average partnership revenue growth rate of 17.5 percent, as well as 77 percent of companies prioritizing partnership development as a key initiative. I just want to make one point very clear that all partnerships should have one main outcome: boosting collective revenues with a scalable and future-proof (“COVID-19-proof”) business model.
So, you might think “this is good and all” but why should I partner with Avantgarde? Let me explain: Avantgarde is a driving force in the Experience Economy, a sector growing 4x faster than the Product Economy according to McKinsey. Since there are so many untapped business opportunities in this field, now is the time to exploit the market and monetize experiences like Airbnb, Red Bull and Disney have successfully done. Or take our partners-in-crime like IQOS: we disrupted their established industry sector of tobacco and reinvented traditional retail through an all-new business model. As of today, we have not only implemented, but also operate multiple IQOS retail stores across Germany and Austria.
It’s simple: We at Avantgarde come up with a kick-ass idea that drives business goals for us and your brand. After presenting the idea, we delve further into developing the idea together. What’s next? We approve it, we love it, we are excited about it and co-invest into the concept – de-risking the business and making use of existing resources in the most efficient way. No party must spend on building time consuming new teams and boring new organizational structures. And just like that, we have a strategic collaboration.
As I said before, this is not another thought piece. I wrote this is to not give you an opinion on strategic collaborations, but to inspire and exchange some insights on how businesses can make their way through the current crisis, and future crises, through the power of company partnerships and alliances. If you like to bounce off some ideas, you can always get in touch!