Many manufactures do not sell directly to the end user. Between the manufacture and the user is usually a channel of distribution. They are essential to the success in any type of business. If you run a service business you need the supplies used that create the business, in which case you are a channel for the manufacturer or distribution of the supplies.
For instance, an HVAC company needs their air conditioners, heat units and service parts so the technicians can perform their job. The business maintains open channels for these items. Let’s face it, how would you react if the repair person fixing your air conditioner failed to have the proper parts with him or even at his shop?
Working in the field of sales is great. Every day brings something new. Since this constant change directly affects sales people and their organizations, by extension it affects the sales process.
Some organizations avoid the entire issue by letting people do what they want. They see this as their way to avoid the need to correct or make changes – sometimes known as the don’t-fix-what-ain’t-broke mentality. This might be fine for your top sales reps, but not everyone can be a superstar. Maybe, if you it isn’t broke, you should break it. Continue reading →
Strategic alliances are an increasingly common sight in the modern business landscape. A study by Booze-Allen & Hamilton showed 20,000 new alliances formed between 1987 and 1992. One reason for this is the need for brand recognition in a crowded global market and because there have been many success stories of strategic alliances that have helped companies take off. Academics talk of the effectiveness of alliances in terms of game theory, these real life examples are a testament to the success of such a bold business move.
Reaching out to like-minded individuals is one aspect of creating new business and it the same effect that happens when reaching out to like-minded businesses or competitors of the same or different genre. Specifically speaking building Strategic Alliances is networking with companies and or vendors that deal within the same area of business. For instance, a local business needs to increase sales. One way they can accomplish this is to find another local business that caters to a similar demographic and build a working relationship that benefits both companies by increasing the audience of both through joint advertising. Continue reading →
In a 2010 Inc.post, “How to Build Business Alliances,” I was surprised to read the very first line:
The basic logic of the strategic alliance – a joint venture between two companies – is often irresistible: It’s difficult to break into new markets, and a partnership can bring instant access to new customers.
What? A strategic alliance is not a joint venture. Yes, a joint venture is technically a strategic alliance. However, the reverse is not true.