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By John J. Mariotti
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This is a more horizontal relationship than a vertical supplier. Do you look at the world as a reservoir of competencies which might complement yours? ’’ How can you better use partners to be more flexible, more focused, and create first to market speed? » Coalitions – require a company to join forces with others for innovation, especially where the investment is high or the complexity great. Coalition members can become more than partners, sharing in the risk and reward of an industry revolution.
A vast percentage of toy business is done in the fourth quarter of the year. Without any additional revenue to sustain it through the slower parts of the year, e-toys was finished, and its inventory and customer list divided like spoils among new and old economy merchants. The best partnerships are win–win, and use the relative strengths of each partner to make up for the other partner’s weaknesses. That is exactly what happened here. com will use again and again – if it is smart – and build still more win–win partnerships.
Com broke a new frontier in B2C (Business to Consumer) with its pioneering work as a bookseller. com keeps spending ahead of its sales and has yet to come close to making a profit. com’s original model could work at all in the long term. com is a good one. TRU attempted to launch its own Web initiative twice – once on its own and once in a partnership with Benchmark Partners. Each failed because it (and its management and board) could not come to grips with the issue of cannibalizing its own retail store sales.