Has your company has achieved a peak? You have been wondering what comes next. Create strategic alliances. A strategic alliance will help you achieve your next set of objectives; the ones that you cannot achieve on your own. With a well-structured alliances, 1 + 1 = 5.
To add a new product or market, there are three ways: Build it, Buy it, or Partner for it. Fastest path to market is to create a partnership. Many large companies create a strategic alliance first to get to market fast. If the market explodes, the large company purchases their alliance partner.
Your company collaborates with top-notch goods or service providers all over the world. As a partner, you maintain your status as an independent identity, share control over the partnership, and contribute until the alliance is terminated.
Key Alliance Points
- Strategic alliances are formed in the global marketplace between businesses based in different regions of the country or the world. Results, advantages to all the members of the alliance.
- Strategic alliances help you learn the necessary skills and new capabilities from your strategic partners. Your strategic partnership can enhance your productive capacity, provide a distribution system, or extend your supply chain.
- Strategic Partners may provide goods or services that compliments yours. The two of you will create synergy and improve the end result.
- Strategic Partners grant you legitimacy and credibility to a new industry. This is the benefits of having a well-known and respected alliances
- Strategic alliances reduce costs and risks by distributing them within the alliance members. Obtain greater economic rewards through the alliance as production volume increases causing the cost per unit to decline.
- Strategic Partners bundle specializations together creating additional value to the brands.
- Strategic alliances bring competitors together instead of having them compete. By providing assistance and creating vertical integrations where the partners are part of the supply chain, it will allow them to pool resources and skills resulting in future businesses opportunities and development of new products and technologies.
Want a new market? Does your market move fast? Test the waters with an alliance. You might surprise yourself. Let us know how it goes.