In todayís volatile economy, businesses large and small must take advantage of every opportunity to lessen risks and make their bottom line. One tool is strategic alliances. Many businesses, big and small, have entered into these beneficial partnerships to share resources and expand brand awareness without sacrificing additional capital.
Strategic alliances can be beneficial to all parties involved. These include access to other services, the opportunity to market more expansively, and access to new potential customers. However, there are important factors to keep in mind when pursuing such an arrangement. As John J. Buckles states in the International Franchise Associationís website, the main concerns should be how the potential partner would help your business and how will they also benefit from the alliance. If both sides cannot benefit, then it will surely result in a damaged relationship.
So how can one avoid the pitfalls of a potentially mismatched alliance?
First, ensure that they can complement your product or service. An example of this is if you are in the business of selling mobile devices such as smartphones and tablets, your partnering business could be an accessory provider of protective covers and cases that fit the devices.
When seeking a business alliance, be sure that the partner shares your same values, expectations, and goals. The prospective partner should also have some knowledge of your product or service to more effectively serve clients. It is also important to openly discuss the level of commitment each partner is willing to contribute.
Being flexible and able to adapt to change is also an important quality in a strategic alliance as both partners work towards common goals. Keeping in mind that this is not a merger and that terms need to be mutually beneficial will help pave the way for continued success.
3rd Eagle is the premier expert on strategic alliances, dedicated to finding successful partnering solutions for your business. Contact us for more information on what alliances we can develop for your business.