The+Consortium+Model

What do you do if you believe that your company—like Wal-Mart—knows what the industry needs, but you’re not big like Wal-Mart?

You use the Consortium model. You create a consortium, with a common set of interests. For example, over the years, IBM, Sun, Netscape, and others regularly found the need to create a single force to counterbalance Microsoft, the industry leader, as it attempted to unilaterally define industry standards. From the early days of desktop computer standards, consortiums had attempted to include Microsoft, but Microsoft was not willing to forgo its competitive advantage by conceding to a consortium consensus. (Note 1: Google later came to wield the same clout as Microsoft, but these consortiums filled the void before another giant came along. Google itself employs more of a Consortium model, inviting input from the outside. Note 2: Microsoft's clout came not from its size, but rather from its market presence. Both IBM and Apple had a larger capitalization than Microsoft.)

The media often highlighted the efforts of Netscape, Sun, and others to oppose Microsoft in the legal arena. However, their collaboration was often at the nuts-and-bolts technical level, creating standards for web-based graphics, smart cards, and other technologies.

This model has repeatedly and quietly been used by groups of industry leaders to move forward. A more recent success is the Blu-ray optical disc format, the successor to the DVD format. Industry leaders for the Blu-ray format include Apple, Dell, Hitachi, HP, JVC, LG, Mitsubishi, Panasonic, Pioneer, Philips, Samsung, Sharp, Sony, TDK, and Thomson. Note that the consortium diplomatically lists their members in alphabetical order.

To implement the Consortium model, first, define a clear description for each aspect of your vision. Then, find partners and create a consortium for each aspect. Finally, move forward with each consortium on a unified vision, shaping the future for everybody involved.

Use your browser's Back button to return to the previous page.

What would you like to do?
 * Edit this page
 * Explore other Living Widgets Business Models
 * Return to the America 2029 Brainstorming Wiki home page