Many companies realize that while working solo may seem convenient, the growth rate is both slow and unpredictable. In an era where technological advancements push companies at a neck break speed, companies are now shifting focus to forming strategic alliances. The collaborations aim to pool resources together. Partners make use of mutual assets. Creating strategic alliances provides growth. According to case studies conducted recently, 82% of companies have partnered with other businesses in anticipating the future for good reasons such as:
Increased exposure equals increased profits
A classic case study of how strategic alliances lead to exposure and more benefits is Starbucks. Back in 1993 Starbucks partnered with Barnes and Nobles to open up franchises. A couple of years later Starbucks formed an alliance with Pepsi, which allowed mass marketing of some products. Starbucks subsequently formed an alliance with Kraft to distribute product in supermarkets and other related stores. Strategic alliances are lucrative. Many B2B companies embrace them to grow and increase profitability.
Leveraging influence for shared success
Sometimes a B2B company needs a prominent company as a partner to get to the limelight. Take for example, partnerships between Amazon and its clients. Apart from highlighting the products of the customers, Amazon contains an amazing portfolio of the companies for a user reviews when purchasing products. Influence of Amazon on these enterprises increases both credibility and exposure.
A source of hope for startups
B2B companies were once startups. They grew by choosing the right partners. The case studies conducted on past collaborations act as a source of hope for startup B2B companies. Research shows that large enterprises generate trillions of dollars in revenue stemming from small and medium-sized businesses alliances. Growth is especially relevant to the partners created.
Looking for more reasons for alliances? Guiding smart companies in their search for effective and beneficial alliances between businesses is how we help you. Contact us for more information.
George Tyler is Chief Alliance Officer for 3rd Eagle, a boutique consulting team devoted to enhancing strategic alliances to grow your market share.
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