In today’s global business landscape, a company’s success is often measured by its reach, access, and ability to innovate. Reach is important for getting a product right in front of customers, while access to resources and market channels governs the ability of a company to develop its product from concept to maturity to market. The same goes for innovation; it is the source of cutting-edge technologies that a company uses to differentiate itself from the competition.
These elements apply to corporates as much as they do for startups in growing, increasing competitive advantage and generating revenue. For this reason, corporate-startup partnerships are increasing in frequency, locally, regionally, and internationally.
In this article, we share a few ways how corporates and startups stand to benefit through business collaboration.
Benefits for Corporates
Insights into Market Trends and Industry Disruptions
By working with startups, corporates acquire insights into market trends related to their business due to new technology or innovation.
Partnerships could uncover ways to increase revenue or margins and facilitate the disruption of core business models – which can be challenging to do from within, owing to internal push back for risk of negatively affecting moneymakers.
Potentials in Innovative Solutions
There’s always a risk of missing out on potential business opportunities if corporates choose to work only with established tech providers. Products from startups may surpass existing solutions, either because of a stronger innovation focus or an emphasis on reducing overhead costs.
Collaborations may also highlight potential channels for corporates to expand within emerging business fields.
Increased Customer-Centricity
Innovations by startups are generally more aligned with customer needs than corporates, which are often constrained by process-driven cultures. Business collaboration with a startup will allow corporates to more quickly adapt and tailor their products or solutions to serve their customers better.
Benefits for Start-ups
Access to Revenue and Sustainable Growth
By collaborating with corporates, startups gain access to revenue, which is less time spent hunting for investments. Furthermore, corporates are more likely to seek long-term collaborations, which can push startups further along their journey to becoming profitable.
Credibility Gained Helps with Sales
Business collaborations with corporates establish credibility for startups in securing new clients. Given that most corporate decision-makers look at references before embarking on a partnership, existing or previous collaborations transform the sales process from an innovation pitch to a success story.
Globalisation
Corporates often operate in multiple countries. For a startup, this means increased market access, which also translates into data from a more extensive customer base from which they can refine and optimise their products.
Infrastructure to Scale
Established corporates have the infrastructure and the clients to scale up a startup business model faster than a startup could achieve on its own.
Potential for Innovative Expression with Access to New Assets
Collaborating with corporates gives startups access to previously inaccessible proprietary assets, such as data, enabling them to refine their products or create new business opportunities.
Mentorship
Startups can leverage the knowledge and experience of their more established partners to gain a better understanding of the market, and how to develop holistically.
Ready to collaborate?
There are several factors to consider when exploring potentials for collaboration, such as market validation, ideal ecosystems that are ripe and hungry for innovation, startup investments trends, and more. At Scaler8, we have gathered a team of experts, matched with a network of partners and mentors with extensive knowledge on what it takes to penetrate the international market.
We help Asian startups and SMEs with market exploration, preparation, and access services along with international expansion strategies tailored to the needs of each individual company.
Reach out to us and find out how we can help you get started on your journey to international expansion.
Apply for Scaler8’s Open Innovation initiative here.
