Companies around the country are looking for new ways to build partnerships, improve their brand, grow their community and increase revenue. For all these goals, alliance management is crucial to get the job done. Consultants help to accomplish this task but the value of your product or service is also extremely important.
Alliances with large or strategic organizations take your business to the next level. For example, Mozilla Firefox internet browser and Google created a partnership. Mozilla put the Google search bar in all of its browsers while Google provided preferred download ranking and funding. Soon enough, Google was getting many more searches and Mozilla was getting more downloads. The smaller, non-profit Mozilla Firefox got elevated to become one of the most well-known browsers in the world.
By the same token, alliances help to boost sales channels and take companies from small to medium to large. Value Added Resellers (VAR) provide feedback, business development tools and sales conversions for brands and manufacturers. With the right VAR, you can automatically boost sales orders dramatically leveraging their relationships. These firms have direct channels to major retailers such as Wal-Mart and Target or they can get you in to the right enterprise distribution channels. Either way, they improve your revenue very quickly.
On the production side, teaming up with and Original Equipment Manufacturer (OEM) can drive down your production costs and improve quality. You can lower your price to the end-user and still make a healthy profit with a fine product.
Once you identify your alliance prospects, plan to use resources to manage the relationship. Track and monitor the relationship on a regular basis. Many companies create their own scorecards that they share with their alliance partners. These scorecards become a strategic advantage for the companies and are not usually shared to the outside world. Track what is important to all members of the alliance.
Your company benefits from alliances in almost any department, not just sales, marketing or production. Just don’t create them and ignore them. Make alliances a part of your corporate strategic plan and focus on them to help you capture market share.
3rd Eagle is a leader in Alliance Management. For more information, please contact us.