Pros and cons of start-ups collaborating with giants

A strategic alliance between companies is an essential ingredient for the successes of a business say several researchers and authors. They urge traditional companies to embrace the digital economy in order to survive and continue succeeding as a business venture. There are pros and cons to collaborations across sectors and different organizational cultures such as large, cumbersome corporations and nimble start-ups.

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Who is disrupting your industry behind your back?

Often we hear „There's all new world out there“. But what does it mean? For some, like Blockbuster, it means that tomorrow, they will become obsolete. That there is a new sheriff in town and their services are not needed anymore. For others, like Netflix, it means they are up to something big, a game changer. It’s happening every day. We see billion dollar companies emerging from nothing within years or even months, making old titans obsolete. Think Facebook, Skype or Instagram. It took 13 years for TV to get to 50m users, Facebook did it in 3.5 years, and Instagram reached 50m users in just 6 months, so ask yourself: where are you going to be in one year from now? 

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What does it mean for a corporate supertanker to cooperate with a startup?

On paper, it absolutely makes sense why startups and corporations should work together, how they can benefit from each other and how their needs are complementary. In practice, things are a bit more complicated and too often both parties end up disappointed and disillusioned. However, this can be avoided, here’s how.

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Answer these 10 burning questions to make marriage between startups and corporations work!

Marriage between big corporations and startups is not a new thing. Companies like Microsoft, Yahoo and Google have cooperated with numerous of startups through its existence.  Nowadays, we see a lot of non-tech players like Coca Cola, Nike and even New York Times launching their own startup initiatives. Weather they are organizing hackatons or competitions, launching their own incubators, or dedicating serious budget for venture deals, large corporations are more and more present in the startup world. There could be many reasons why they find startups interesting. Some of them want to bring new products and services faster to the market. Other ones want to be up to date with the latest innovations and some of them are even using startups as a PR stunt.

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