Driving Innovation: Navigating Risks and Opportunities in Cross-Industry Collaborations between the Automotive and Fashion Sectors

Abstract

In today’s business world, innovation and strategic partnerships are prominent features. A noteworthy illustration of cross-industry collaboration is the fusion of the automotive and fashion sectors. This thesis conducts a thorough investigation into the dynamics of these partnerships, focusing on the inherent risks and opportunities. It aims to provide collaborating companies with practical insights to navigate this complex landscape effectively. The study begins by explaining what cross-industry collaborations are and why they matter in today's economy. By looking back in history, it traces the development of automotivefashion partnerships and explores some of the unique customer demographics of each sector. By laying this groundwork, the research establishes a solid foundation for understanding the challenges and opportunities that arise when different industries come together. At the heart of this thesis lies the exploration of how companies navigate collaborations to create value for both parties while managing risks. By combining empirical research with theoretical analysis, the study reveals the mechanisms that drive these collaborations, providing valuable insights for companies. Key to this investigation are qualitative insights obtained from expert interviews, which offer detailed perspectives on criteria for starting partnerships, defining goals, strategies for achieving success, and managing risks. The research findings highlight how important it is for successful collaborations to ensure clear communication and to meet customers' and stakeholders' expectations. Challenges such as bureaucratic obstacles and aligning different interests are emphasised, demonstrating the complexity of these collaborations. It is crucial to define strategic goals and reach out in a timely manner. Continuous investment and strong risk management strategies are also essential. These collaborations not only affect how customers perceive a brand and its appeal but also create opportunities for innovation and expansion into new markets. Importantly, the thesis stresses the significance of following up after partnerships and learning from both successes and failures. By taking a comprehensive approach that addresses strategic planning and perception management, companies can enhance the benefits of collaborative ventures while mitigating reputational risks. These findings offer practical advice for companies aiming to harness the transformative power of cross-industry collaborations in a changing business environment. Ultimately, this study provides a structured framework for navigating the complexities of cross-industry collaborations, offering practical guidance for companies embarking on such ventures. By fostering a deeper understanding of innovation and partnership dynamics, the research aims to empower companies to leverage the transformative potential of collaboration in an increasingly interconnected world.

Date of Award	2024
Original language	English
Supervisor	Karin Palmetshofer-Hörschinger (Supervisor)