Corporate Trade for Disruptive Companies

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Filed Under: Business Trends, Corporate Trade Explained

Corporate trade is usually discussed in the context of a financial solution for well-established companies that have an issue with an excess or underperforming asset. These companies have a history of media buys, a product distribution pipeline, and other normal and predictable systems. For these companies, corporate trade is used to get more value from the asset while optimizing their media presence , increasing  marketplace awareness through events or retail marketing activities.  

However, disruptive companies, the ones that appear out of nowhere with a new product, can also use barter to their advantage.  These disruptive companies are competing with established companies, their own competitors, or both. As such, they have a wide variety of challenges:

  • Limited, if any, history of financial success or profitability
  • Need to determine priorities – constant pressure to determine if funds should go towards
    • R&D,
    • marketing education,
    • manufacturing,
    • distribution,
    • consumer engagement, or
    • lowering margin to increase exposure
  • Competition from “gorillas” in their related fields that can out-spend and out-wait them
  • Possible reactive legislation or negative response from various groups or associations

Many of these disruptive companies may not be familiar with the capabilities and advantages of partnering with a corporate trade company. Or they may think they’re not big enough.  However, using product to offset the cost of media is a savvy move, and one that would give them a competitive advantage. In addition, barter companies that offer other services such as experiential, provide a unique opportunity for creating consumer relationships while maintaining a cost advantage.

Disruptive companies have a small window to make big gains. Corporate trade offers a financial solution that can help them get ahead of the competition.

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Active Staff
Active International helps the world’s leading brands use corporate assets to fund media, marketing initiatives and path to purchase programs that increase consumer engagement and loyalty. As the global leader in corporate trade, Active has provided its clients with $1.5 billion in economic benefit since 1984. The company is based in New York and has offices in 14 countries.

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