Mutual Vision: Strategic Partnership & Growth !!

 

Expansion of markets beyond borders has affected how businesses function and reach out to collaborators around the world. As a result, global marketing is vital for both large and small modern businesses. Irrespective of the size, businesses nowadays with innovations in transportation can conveniently ship their products and services to consumers worldwide.

The global expansion enables companies to realize a massive increase in profits. Stable businesses therefore should definitely consider this option and overcome hesitation to enter into unknown territory. Entering a new market in a country you do not know much about is also a good idea since it reduces competition to a large extent.

Strategic Partnerships & Growth

There is a strong connection between partnerships and growth. Working along with another company that communicates with your audience in an unknown territory is a win-win situation for both. Eventually, you will expand your reach to access potential clients. And if your partner is held in high esteem by its audience, credibility will automatically be transferred to your business by association. However, vet your partners carefully and evaluate that they can actually benefit your potential audience.

Strategic Partnerships Have Mutual Benefits

True, and mutual benefits lead to long-term profits when you combine forces to expand the reach of your brand. Co-branding adds value alongside increasing brand awareness and creating trust. There are several examples of successful companies working together for a long-term profitable future including Spotify & Google and McDonald’s & Coca-Cola. Some strategic partnerships may not even have much in common. But they find creative ways to expand the audience while entering new markets.

Types of Strategic Alliances

Broadly, there are three types of business relationships. Like a personal network, they evolve out of who you know in business to supplement your capabilities and weaknesses with strength. Nevertheless, strategic partners decide to work together towards shared goals while remaining separate and independent.

  • Joint Venture: Joint Venture is a baby company. When two-parent companies decide to share resources and equity with a binding agreement formed for a specific purpose. Joint ventures have a clear-cut objective and profits are normally split between the two companies.
  • Equity Strategic Alliance: Equity partnership is a legal arrangement where two or more entities agree to pool in their financial and human resources for business. They agree to share a given portion of profits and losses in the venture. Equity strategic alliance sets forth the rights and obligations of the partners. And the proportion of equity to share.
  • Non-Equity Strategic Alliance: Non-equity partnership agreements are often more loose and informal than equity strategic alliances. These agreements are commonly created to share resources between companies without sharing equity. Non-equity strategic partnerships make up for a majority of business alliances worldwide.

The type of alliance to undertake is selected depending upon the scope and needs of a business. It is mission-critical and therefore selecting the right type of partnership contributes to the success or failure of a venture.

However, both organizations benefit from strategic partnerships and help drive a business forward. They stave off competition and threats while establishing leadership in the market.

This is why most successful businesses around the world build their partner ecosystems. And companies that fail to do so usually flounder in absence of tools to be competitive in a global marketplace.

Advantages of Strategic Partnerships

  • Sharing Resources & Expertise: First of all, you get the best of both companies. Then you get a deeper understanding of the product, sales, and knowledge of marketing. You also have more hands-on deck to increase speed for marketing.
  • New Market Penetration: In many cases, strategic partnerships give access to newer markets with solutions that are not possible for you alone. This is the prime reason why companies going global like to work with a trusted local partner to get a foothold in the emerging market.
  • Expanded Production: Another advantage of strategic partnership is when it comes to manufacturing and distributing. Strategic alliances enable you to increase capabilities and quickly scale to meet the rising demand and which in turn enhances business confidence.
  • Innovation: Businesses can outpace the competition with the right strategic partners who are normally creative and revolutionary. They can come out with new solutions and complete packages for customers to change the marketplace in a dramatic way.

Strategic partnerships are useful in many ways, especially when you are seeking global expansion. They bring together valuable expertise and resources. In a business environment that values speed and innovation. Choose wisely or better seek expert Advisory Services as a strategic partnership can be a game-changer.

 

Daniel Imperato
Author: Daniel Imperato

Dr. Fr. Daniel JP Imperato KM.GC.S.S.P.GM+OB was born in Boston, Massachusetts, United States, in 1958 to Italian and Lithuanian immigrants. He had a checkered career spanning over 40 years with both good and bad periods. Dr. Imperato is a well-learned worldly diplomat, professional speaker, political constitutionalist, and global business advisor. Early Life Dr. Daniel Imperato started very young as an altar boy at St. Anthony’s Church in Boston, Mass. He delivered newspapers as most young lads do at age 14. He passed out flyers in the campaign for George McGovern. Dr. Imperato also worked as a cook in a small sandwich shop near home. Dr. Imperato worked as Assistant Auctioneer at Henry Gray Associates in Boston, Massachusetts, and the Boston Redevelopment Authority when Kevin Whites served as a Mayor, and for the City of Revere under the Majority Whip Leader Tip O'Neill. Dr. Daniel Imperato felt worthy enough and gave it all while pursuing every opportunity that he got.

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