Creating Profit Through Alliances - business models for collaboration E-book | Page 71

not without reason that Coca-Cola's brand value is immense, and their product is available virtually everywhere. This even forced Unilever to team up with soft drinks giant Pepsico for its Lipton tea brand. The clear distinction between tea/ice tea and other soft drinks means that the partners do not interfere with each other, even though they share the same target group and distribution channels. These channels can now be utilised jointly, which generates a considerable cost benefit on account of the huge volume. There are also challenges for the distributor. Especially with custom-built products or with services, the contact between the supplier and customer cannot be avoided. After making the deal with a specific customer, the distribution partner has to sustain his added value, which in most cases is based on relatively easy to copy knowledge. This can be done in several ways:    By sustaining a broader relationship with the customer than for this solution only. The added value of the distribution partner then lies in his product portfolio and his further arrangements with this customer. By continuously bringing new one-off customers into the alliance. With a contractual arrangement, stating that all business of the supplier with the distributor‟s customer base has to be done through the distributor. Comsoft Direct Comsoft Direct is one of the biggest large enterprise resellers of Microsoft software and, as such, a specialist in licensing structures and agreements. Headquartered in Switzerland and active in a number of European countries, the organisation offers software management services in addition to the licenses sales. manager. In some cases Comsoft takes a partner‟s licensing consultant on its payroll, which is fairly unique for a reseller. Usually, only software providers tend to do this. For the small and medium enterprises market, Microsoft works with distributors that sell to a large range of resellers. For the large enterprises market (up from 250 employees), Microsoft sells directly to the customer directly, and Comsoft then receives a fee from Microsoft. Vincent Lukken, alliance manager at Comsoft, further explains the approach: “New partners are selected with a three-month trial period, mainly to see whether the partner is sufficiently competitive. All resellers receive from Microsoft the same discount on the list price for the licenses. So what part of that discount does the partner have to offer to the customer and how is the remainder split between him and us? Comsoft works with a large number of commercial partners for the hardware and consultancy that complements the software licenses. Partnerships are classified as „managed‟ or „unmanaged‟, with managed partners having their own alliance The next step is to conclude an agreement for six months during which the partner will obtain its licenses exclusively from Comsoft. In return, partners demand a larger discount. In most cases a 50%-50% split of the margin is agreed. This can vary, as the 69