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Coopetition…. Lars Thykier Presentation at TAFI- Convention 2010 Convention , Dubai, UAE. Topics to be addressed:. Coopetition – where does it come from? What’s coopetition in other industries like ? What are the benefits of coopetition ?
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Coopetition… Lars Thykier Presentation at TAFI-Convention 2010 Convention, Dubai, UAE
Topics to be addressed: • Coopetition – wheredoes it come from? • What’scoopetition in otherindustrieslike? • Whatare the benefits of coopetition? • To Consumers, Suppliers, Travel Agents and Government? • Learning points.
The origins of coopetition • The Airline industryactually gave birth to the first international ”coopetitioneffort” – IATA! Latercame joint charter flights by tour operators. • The Airline coopetitionwasfurtherdeveloped on the technical side. In Europe for instance, 4 airlinesteamed up to provide joint maintenance to eachother (”KSSU”). • In the 90’ies, the software industrycoined the coope-titionphrase, and otherindustriesfollowed. • 1997 saw the first (coopetition) Airline Alliance – ”STAR Alliance” – and soonothersfollowed, i.e. ”OneWorld” and ”Skyteam”.
Car Industry coopetition example: Peugeot 107 Toyota Aygo Citroen C1 Three brands & companies – one common platform
Travel and Tourismwhat are the coopetition issues? The Travel Industry angle: • Look at the true needs of the customers, don’t just paylip-service to the coopetitionconceptbecauseeveryoneelsedoes….! • Work togetherwhere it makessense: • Provide joint Transportationwhere relevant • Co-brand whenyou’re not able to marketyour products wellenoughyourselves • Develop joint quality systems wherethere’s a customerneed
The Airbus – Boeing VLCT coopetition App. 850 sold App. 200 sold …..it ended up with two very different strategies!
Can Governmentplay a role in tourismcoopetition? Yes – it can! BecauseGovernmentcan and should: • Fund research and development in bothcoopetitiontechniques AND, wherepossible, with a tourismrelated angle. • Provide incentiveschemes for tourismbusinessesthatusecoopetition as a way to become more sustainable and competitive. • Support tourismindustrieswheretheyare not able to financetheir transition to sustainable products and operations.
Travel and Tourismcoopetition – an example of the government angle. • In the EU (Europe) – we’re pressed for business from abroad, and the vast majority of tourism businesses (92%) are SME’s with zero financing available for marketing purposes. • Many EU-countries do not have the financial power to market themselves effectively in the world. • Consequently, EU’s 2010 Tourism Forum in Malta focused on ”coopetition”, or how to do joint marketing of Europe abroad. • E.g. by launching ”Brand Europe”, using Internet tools to market Europe, develop joint marketing plans and common quality standards!
An example from my own back yard… Marketing of Denmark abroad
Marketing of Denmark abroad The issue is not the Danish product, but the marketing to the relevant travel agents and Tour operators abroad! How does a country with limited ressources (budget of app. MUS$ 40 worldwide) get the most out of its marketing money in terms of marketing towards the consumer AND the tour operators?
Marketing of Denmark abroad How does Denmark market itself in all but the closest markets? The answer is simple! Coopetition!! In all markets outside of Europe, the Danish Incoming Travel agents and tour Operators team up with the competitors, and plan and deliver workshops, study tours and general marketing of Denmark. In the Far East, Scandinavia has gone even further and decided to have just one Marketing Arm – ”Scandinavian Tourist Board”, to market Scandinavia there!
Coopetition Learning points: • Coopetition is already a wellknowntool in the travel and tourismindustry. • Weneed more research in travel and tourism to determine, wherecoopetition as a tool is relevant and useful for the industry. • We must develop the skills of ouremployees in order to beable to beable to pinpointareaswherecoopetition is the right way to go. • Coopetitioncanbe a way to inproveproducts, both from a customer and an Industry perpective, for instanceif an industrydecides to develop a quality standard together.
Whatshouldyou as Travel agents thinkabout in coopetition terms? • Will mycustomers accept that I cooperate with otherindustry partners? • Can I provide some of my services cheaper and/or better by cooperating with mycompetitors? • Have similar (coopetition) effortsbeen made before in the areasI’mlooking at? • Will my distribution be hampered if I cooperate with competitors? • Can I handle myownproductsatisfactorilywhen I work with others to provide them? • Can I trainmyemployeessufficientlyto beable to handle thatI’mcoopeting?
