Managing Channels of Distribution with Strategic Partnerships

Starting or expanding a business takes more than just a good business plan and product. It also requires avenues for getting your products to the right customers at the right time. Finding channels of distribution that allow you to accomplish your business goals involves building deep strategic alliances with the right partners.

Strategic alliances create a quicker path to growth. By aligning with companies that have complementary services to those of your company, you can remain independent while expanding your business capabilities. These relationships are mutually beneficial and drive growth for both organizations.

Partner with DistributorsDistribution partners are an example of a strategic alliance that supports an aggressive  growth strategy. A few benefits of forming a strategic alliance for channel distribution include:

  • Shared Risk
  • Speed to Market
  • Costs
  • Access to Markets and Resources
  • Economies of Scale

An alliance with a company that already has established distribution channels is mutually beneficial for both organizations. Consider the strategic alliances that Starbucks formed to successfully expand its market share in the coffee market. First, they partnered with Barnes and Nobles to bring the product to customers in an existing store that was not their own. Next, they collaborated with PepsiCo to bottle their products for in-store distribution. The coffee giant also formed a strategic partnership with United Airlines and Kraft to provide coffee on commercial flights.

This approach capitalized on the benefits mentioned above to allow all partners to expand their product offerings and revenue. In addition, they were able to achieve this without the risk of entering into unfamiliar business areas. Contact us for assistance with identifying the right strategic alliances to support channels of distribution for your growth strategy.


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