Not every startup can afford a manufacturer, distributor, or any big partners. As they are in the very initial stage of their business going through, funding problems can’t provide a costly manufacturer or distributor.
The forward-thinking settled organization sees a startup as a potential partner that can accelerate growth and development.
The dynamic and increasingly competitive nature of today’s market requires the young and old minds to form an innovative partnership to conquer the marketplace.
A more established organization fights to stay current and updated while startup fights for their survival. Together both can build a valuable business that brings something meaningful and innovative out of it. We can see clearly that they both need each other to make their survival easy.
The large organization offers stability, funding, distribution, and consistency, which lack a startup as it helps the startup secure a strong foot in the market. At the same time, the startup is full of innovations, which is admired by older companies to remain competitive in the market.
Let’s have a look at some examples.
Like every CPG company and retailer, Coca-Cola struggles with out-of-stocks problems. When the product is not on stock and demand for the product increases within the customer, it’s a million-dollar problem. Although, at that time, Coca-Cola was serving more than 200+ countries with 50 million retailers, out of stock is a huge concern.
That’s why Coca-Cola merges with co-founders AJ Brusein and Yong Kim to build Wonolo, an on-demand stocking platform to help Coca-Cola to keep the supply inflow and conduct RED(Right Execution Daily) surveys. With the help of Wonolo, Coca-Cola reduced its cost by 75% per outlet. Wonolo raised $5.7 million in its latest funding round.
The partnership is a win-win for both parties.
IBM declared its partnership with three companies, which include Spare5, 113 Industries, and Triax Technologies.
This partnership is the development of an application with the help of Watson technology to “transform the future of sports.” Spare5 is a new startup that raised $10 million in August and paid people to spend some time performing some quick activity on a smartphone.