Participating in a network also entails certain risks :
� Loss of control : the core of any partnership or alliance is sharing the control over activities undertaken in collaboration . Although that control may initially work fine , as more parties join in this is something to watch closely . � Networks may start to lead a life of their own , for instance because the participants get to know each other and may launch new initiatives .
� The distribution of revenue may take a turn for the worse for a particular company . For example when one company sell a machine and the other companies sell the consumables , and the sales of one consumables is less than expected . In joint ventures this drawback is shared with the other parties , in the event of licensing it depends on the actual agreements whether this is compensated .
In all cases , it is important to carefully consider whether to join a network .
Another case is when you see a project in the market and it makes sense to bid with a networks of partners .
Obviously there are multiple players in the market . Some partners offer a better chance of winning the deal than others . Differences can exist in the relationship with the client , in technology , and even in experience with selling a combined offer .
Last but not least : the potential to make a profit can differ per partner . What are their project management capabilities ? Do they have experience with working with a partner ? And how tough will you have to negotiate for your share of the profit ? Your partner may even be cheating on you and leave you with nothing .
Just as you will evaluate your potential partners , they will evaluate you against the others . The two things that you can influence in this process are :
� � your own attractiveness , for example by investing in innovative solutions your contacts in the market , to enhance your visibility for others and to get more information .
As soon as you have identified your „ perfect ‟ partner you must aim for exclusivity . But often everyone waits to play his cards up to the last possible moment . A careful partner selection that starts even before the project is announced can help to make the added value of a specific network clear .
Making a good offer is a complex process , especially if you want to combine skills from multiple distinct companies . A tight timeframe with some slack is important , as it wouldn ‟ t be the first time that one of the parties backs out just before submitting the offer . To agree on exclusivity is one , but you can ‟ t force the other party to sign the offer . So make sure you have time for a backup plan .
The advantage of participating in a network is having additional opportunities in terms of turnover and profit , but the disadvantage is the loss of control . One of the best methods to increase your own influence is to limit the number of partners . This implies that , for each further partner , the benefit of admission to the network needs to be weighed against the loss of influence . When setting up a network it can therefore be a good strategy to choose a partner who is perhaps not the best there is , but who is able to contribute two or more different essential disciplines .
Being the one to initiate a network would seem to be an effective way of maximising control over that network . Recent research using games theory supports that assumption 30 . Suppose that it would
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