What to do if Collaborative Economy Marketplaces Are Disrupting Your Business
Tuesday, 16 July, 2013 Leave a comment
Where, oh where are the would-be future leaders in Financial Services? That isn’t those that are ‘struggling’ with decisions surrounding options 1 – 4, rather it is those who are looking at 5 & (particularly) 6 as a means of building sustainable resilience into their own model and sharing these properties with stakeholders, i.e. recognising the interconnected nature of business ecosystems.
I want to talk to you about how best to create, exploit and maintain an ‘informational advantage’ for long term ‘model’ resilience…
The Six Strategies Corporations Can Take to Address the Collaborative EconomyRight now, I’m seeing companies react in a few different methods, each with different levels of investment and outcomes, here’s the scenarios, are far as I can see:
- Ignore it, and hope it goes away. An easy solution is to avoid it, or don’t look at it. The goal is that no attention to this market will hopefully result in it going away. The risks are that if it doesn’t go away, then your company will be behind those that have already adopted this.
- Fight it with policy, lobbying, or marketing. A common reaction is business model protection, and using lawyers, lobbyists or aggressive marketing and sales to counter this movement. While the costs of this effort are high, it’s hard to stop a movement that’s pinned off the internet, it’s an unstoppable force.
- Sponsor the startups. Companies like sponsored these startups, for example we’ve seen Barclay’s card sponsor London bike sharing, Citibank in NY, and NBC sponsor Yerdle. Brands that seek to carry their brand with the movement can harness this movement for marketing and branding.
- Acquire the startups. To date, we’ve seen smart purchased by Avis of Zipcar and Enterprise Holdings making acquisitions, showing the value of getting into this market at an early stage. The downside is that companies like AirBnb have raised over $120m in VC funding, increasing their value, making it an expensive purchase.
- Integrate your business model. Corporations can work with startups by enabling their own products to be shared and passed along in these marketplaces. Patagonia has partnered with eBay to encourage consumers to buy used goods, and Scottevest apparel has done the same, promoting the growing eBay community from their own corporate webpage.
- Build your own marketplace. In the most advanced model, I expect a new class of corporations to host their own communities that enable customers to trade, rent, resell their goods and services in a brand hosted community, enabling new value for the brand, and offering the brand new ways to extract value.