• Technology is exploding beyond most people's ability to keep pace.
• Those technologies are creating new educational needs and new market niches.
• New international markets are opening up.
• Competition is intensifying, both in the United States and abroad.
• Even as new opportunities and needs appear, budgetary pressures are increasing.

If you can't know and do everything yourself, the reasonable responseis to seek help. As the following case histories demonstrate, a number ofshow managers are doing just that: forming joint ventures or other strategicalliances with partners who have complementary knowledge and expertise.Such alliances can help the players penetrate new markets as well as strengthentheir positions in their present markets.

Serving the membership
American Society of Association Executives + Professional Convention ManagementAssociation
ASAE has joined forces with the Professional Convention Management Association(PCMA) to cosponsor the Meetings and Exhibitions Technology Conference,which debuts in April. Offering this new meeting is "almost a dutyto help people come up the learning curve," says La Branche. "Therewas a need in the industry."

There are, he says, many ways in which advancing and converging technologiescan help meeting organizers. "But for the promise of technology tobecome reality, we must make users more knowledgeable and also create adialogue between users and providers." Hence this conference.

Another reason for the conference is that "association members aremore demanding than ever before," says Bill Myers, Chief OperatingOfficer of PCMA, Birmingham, AL. "They expect more services targetedto their own niche."

It makes sense for PCMA and ASAE to coproduce the conference. "We'revery similar organizations in the same field," says La Branche. Sothere is some overlap of membership and focus. There's also the advantage,for exhibitors and attendees, of having one meeting, rather than two.

But a key benefit is that the combined forces are more influential andeffective. "If two organizations with considerable clout work togetherfor the benefit of the industry, it is an impressive alliance," saysMyers. "It almost assures the success of the venture. When you getPCMA and ASAE together, you have access to membership lists and specialinterest lists, so you can do a complicated meeting together with greaterassurance that it will be financially viable. It has also made the planningprocess better because we have the benefit of the creativity of two staffs."

Allocating responsibilities for the event seems to have proceeded smoothly."The leadership of both organizations worked out the overall plan,and both boards approved it," says Myers. "PCMA is handling educationalactivities and solicitation of faculty, and ASAE is handling the contractsfor the convention center and the sleeping rooms, and promotion and saleof space in the exhibit hall. There's been no territorial behavior whatsoever."

Although none of this has been formalized in any contract or legal document,there is a brief outline, perhaps three pages long. "It describes thepurpose of the conference, the concept, the target audience, and roles andresponsibilities," says La Branche. "It's not highly technical-- it's just there so someone else can take over in case Bill and I gethit by a truck."

That easygoing attitude certainly contributes to the success of the partnership."There are style and cultural differences between our organizations,"says La Branche. "But the reason we've been able to work together isthat we're focused on the outcome and benefits for our members. We wantto create and develop a great new meeting. So we don't get tied down inminor arguments."

For example, when creating a name for the event, there was a choice betweenthe term "exposition," ASAE's usage, and "exhibition,"which PCMA prefers. "We said it's not a sacred rule; it's fine withus to use PCMA's term," says La Branche. So "exhibition"it is.

Has it been just as easy to allocate costs and revenues? "It's anequal split," says Myers. "Each party documents expenses to thesatisfaction of the other. After each group takes money to cover its overheadand expenses, if there's any profit left, we'll split it. It would be niceto make a profit, of course, but the real opportunity is to demonstratethe importance of strategic alliances."

Entering a developing market
Reed Exhibition Cos. + The Confederation of Indian Industry
Reed Exhibition Cos. (REC) has three options when entering a new or developingmarket, says Patrick Robinson, Director of Corporate Communication and SalesDevelopment. It can open an office, acquire an existing business or forma joint venture or partnership with a local organization. To gain a footholdin the emerging exhibition industry in India, a country that is attractingmuch interest now that its economy is more open, REC chose to partner witha local organizer, the Confederation of Indian Industry (CII), in New Delhi.

Opening an office "is a slow process and can be extremely expensive,"says Robinson, who is based at REC world headquarters in Richmond-on-Thames,just outside London. "And there aren't many organizations in Indiato acquire. But we have found a local organization that knows the market,understands how it operates, represents the leading business organizationsin India and in turn wishes to work with an international organization tocomplement their activities." Equally important: "Their philosophyand their approach to exhibiting are similar to our ideals" -- notably,REC's belief that its purpose is "delivering business contacts."

Countering a suggestion that an exhibition organizer in a country notwell known in the industry might itself not be up to speed, Robinson emphasizesthat CII "already runs one or two successful events. We respect andadmire their professionalism, and we believe that between us we can createevents that will meet international expectations." CII is known especiallyfor the series of Indian Engineering Trade Fairs that it has organized bienniallysince 1975.

REC's initial objectives, says Robinson, are "to create new eventsjointly, and also be CII's international reps to build their existing events.We have a worldwide business and can bring international techniques, visitorsand exhibitors to India." The first launches are Microtecnic Indiaand Scantech '97, both being held concurrently with CII's 12th Indian EngineeringTrade Fair in February. REC also promoted international sales of Petrotech1997, held in January, which CII organized with a local utility under theaegis of a government ministry.

"In essence, CII are the operators in India and we operate worldwide,"says Robinson. "We will seek international speakers, work with internationalorganizations, and make sure the exhibition is hassle-free for the internationalpeople." REC does, however, have some input into local operations.The two organizing companies meet every two or three months to discuss thebusiness plan for each exhibition.

Robinson anticipates that the benefits of this relationship will eventuallyflow in both directions. "We'll encourage Indian organizations andmembers of CII to participate in our events worldwide." Nevertheless,he cautions that "joint ventures and partnerships are extremely difficult.Don't expect to rush in, rush out and get rich quick. They are extremelyrewarding, but it is hard work."

Adding value for attendees
Expocon Management Associates + Gartner Group
"For every decision we make, we ask, 'How does it add value for theattendee?' This event is very powerful for the attendee," says JohnGolicz, Vice President, Technology Events, for Expocon Management Associates,a Fairfield, CT-based producer of trade and consumer expositions and conferences.That explains why his company has formed a joint venture with informationtechnology advisory firm Gartner Group, Stamford, CT. They will launch theConverging Technologies Expo & Conference in December 1997.

The information superhighway isn't here yet, Golicz observes, but it'son its way, and billions of dollars are being spent preparing for its arrival."By the end of 1997, it will be viable for business, and this eventwill provide a platform for industry to understand it." An event ofsuch importance requires solid informational content, and Expocon believesthat Gartner, with which it has entered into three other ventures, can providethat content.

"Gartner's core strength is content and knowledge of the industry,"says Golicz. "They'll organize the conference -- identify topics andspeakers -- and we'll make sure that everything the presenters need is there.We'll handle all marketing logistics and the organization of the show itself-- selling to exhibitors, marketing to attendees, the contracts with theexhibit hall and the decorators." This alliance is by contract a jointventure, he says: "Equity, profits and risks are shared by both companies."

Gartner, meanwhile, forms joint ventures for a variety of reasons, saysMary Ellen Sheehy, Vice President, Business Development, Worldwide Events.It might be to enter a new geographic market or industry segment, or tobe able to move quickly on a hot topic. "We also seek partners withcore competencies that complement ours," she says, "and that'sthe primary reason for the joint venture with Expocon."

Although some tasks are segregated according to core competency, "Therearen't too many areas where you can draw a clear-cut line between one andthe other," says Sheehy. "We collaborate on marketing strategy,we jointly produce the show budget, and Gartner has input into conferenceand show logistics. We have specific requirements regarding the overalltheme and direction of the events, including identifying potential keynotespeakers and even recommending prospective exhibitors."

Ask Golicz and Sheehy independently what it takes to make a joint venturework, and their responses affirm that they are in sync. Says Golicz: "Besure that the partner has expertise that you don't. Be sure that each iscompensated fairly -- don't be greedy. What you give the partner is justa cost of doing business. And remove your ego when you're the organizer."

Sheehy's views: "Both parties must feel they have a significantvested interest. It's important to act as full partner, as opposed to havingone organization be the driver. There must be a basic level of trust andopenness; both parties must be willing to share information. And there mustbe good communication. In a lot of relationships, there are basic misunderstandingsbecause each organization has its own cultural norms."

Fighting market fragmentation
Royal Dutch Jaarbeurs + Bureau des Operations Internationales + NetherlandsCentre for the Advancement of Trade
Even in small, newly developing countries like Vietnam, there is heavy competitionin the exhibition industry, according to Anne Mast, General Manager, InternationalActivities, for Royal Dutch Jaarbeurs (RDJ) in Utrecht, The Netherlands."If everyone chooses to compete, everyone will lose because there willbe too many events and they will lack exhibitors," he says. "Soit is better to combine forces to be sure we will have enough support tohave a successful show."

RDJ did just that, joining with the Bureau des Operations Internationales(BOI) and the Netherlands Centre for the Advancement of Trade (NCAT) toproduce Agromart '96 in Ho Chi Minh City in June 1996. Under the agreement,BOI, which founded the show in 1991, continues to deal with the venue andsuppliers and handles promotion and local exhibitor sales. "We do theinternational sales because we have a sales force in 21 countries,"says Mast.

BOI sought a partner because "it was facing problems of fragmentationand needed international support," says Mast. It especially wanteda partner that was strong in the animal field for this food, horticultural,farming and fishing show. RDJ fills the bill: Its roster includes the VIVanimal production shows in Utrecht, Bangkok and Sao Paolo. The third party,NCAT, is a governmental export council with an extensive international network.Thanks to the new partnership, the formerly biennial Agromart will now beproduced annually.

Mast points to yet another advantage of bringing in Dutch partners. "TheFrench and the Dutch are both members of the European Union, so they canget support from the European Commission. If only one member asks for support,the EU won't give it."

For the three partners, "There will be a balance between ownership,risk taking and sharing profits," Mast says, although he declines tobe specific. He acknowledges that there can be financial risks, but maintainsthat they are worth taking. "These situations are not very profitable,but they give you a position in the country for the long term."

Growing the business
Dallas Market Center + Fairchild Urban Expositions
After years of working both alone and with partners to organize events atits own facility, Dallas Market Center (DMC) has begun moving "offcampus," to use its term. According to Cindy Morris, Executive VicePresident, Marketing, the move resulted from "a new business initiativebegun aggressively to secure revenue growth for the company and the owners."In its first off-campus partnership, DMC is working with Fairchild UrbanExpositions (FUE) in Atlanta to launch two shows. GiftSource West-Las Vegasopens in June 1997 at the Sands Expo and Convention Center. In January 1998the Souvenir Super Show debuts and will run concurrently with GiftSourceWest.

The two companies previously had a different relationship. When FUE VicePresident Tom Fulghum was at the Atlanta Market Center, and President DougMiller was with AMC Trade Shows, "We were competitors of DMC, vyingfor the same buyer," says Miller. A mutual acquaintance brought DMCand FUE together after learning that both were considering Las Vegas forsimilar events. Now the two former competitors are tapping each others'expertise.

"FUE was founded by professional salespeople who understand thegift market," says Morris. "They own two gift shows. It was anobvious match for us."

It's also a good match because the partners have complementary skills."FUE has a strong background in sales," says Morris. "Wehave strength on the marketing side. If we had identical skills, there wouldbe no need to work together."

DMC will market the events to retailer attendees, and FUE will handleexhibitor sales, leasing and operations. "The responsibilities arevery clearly laid out," Morris says. "We have checklists and documents,and are in touch at least weekly."

But DMC handles exhibit sales for all events at the center. Why can'tit handle them elsewhere? Morris replies, "To accelerate the growthand success of a new venture, you can either hire additional staff, or workwith a partner. We've been more involved with partners recently to enhanceour business-development efforts."

FUE, meanwhile, sought a partner specifically because it understandsthe market so well. "There are a lot of gift shows," says Miller."We knew this wouldn't be a slam dunk. We needed all the resourceswe could get to make it work. Could we have done it alone?" he asks."Sure. But as well as together? Probably not."

And therein lies the key. Competent show organizers certainly can producesuccessful events on their own. But by working with a partner that has complementarystrengths, they can produce an event that has even greater impact on themarket, is more valuable for exhibitors and attendees, and meets competitionmore effectively.