Importance of Strategic Alliances in Business:

No man is an island, or so the saying goes, and that applies to businesses as well. Probably that’s the reason the Importance of Strategic Alliances in Business increases. While you might think that you have to do everything yourself, the truth is, if you can form strategic partnerships with businesses that are complementary to your own, you could both end up increasing your bottom line.   

Take your local coffee shop, for example. They might be experiencing a lull in sales due to a number of different factors and be looking to tweak operations a bit in order to increase foot traffic. By partnering with a local print shop to advertise their pieces on the wall and a bookstore to keep a supply of books on the wall, the coffee shop will increase the number of people that come through their shop (and stay), whilst simultaneously increasing sales for the other businesses as well. It’s a win for everyone.

Why Should Your Company Form Strategic Partnerships?

The main benefit to forming a strategic partnership with other complementary businesses is obvious: revenue will most likely increase across the board. Beyond that, however, there are a certain number of advantages that you’ll only get when you partner up with other people. This improves your business and further emphasis on the Importance of Strategic Alliances in Business.

Consider the fact that your customer base will significantly increase. No longer will you be selling to the same core demographic; now, by tapping into another businesses’ customer group, you’ll have more people that are aware of your operations as well. You could also save money on shared expenses by going in on an event center or advertising strategy together, or even piggyback off of a company that is much larger than your own.

 How to Build Strategic Partnerships?

The first question that comes to mind when thinking about this How to Build Strategic Partnerships? It isn’t rocket science, but forming a successful strategic partnership involves asking a few key questions of both yourself and the companies you’re targeting. By far, the biggest question you must ask yourself is whether or not this alliance is a win for both you and the other company. What kind of benefit will they derive from this union? Knowing the answer to that is key to landing that partnership.This further emphasis on the Importance of Strategic Alliances in Company’s Activity.

Also, consider the logistics of working together in the first place. What goods or services can you share to each other in order to help the other grow and what kind of things can you offer to customers as a package in order to save money while still maintaining a healthy profit margin? Moreover, in what ways can you coexist together that will increase your reach to a broader customer base? These are the types of questions that you have to answer in order to properly identify a valuable strategic partner.  

If you’re still struggling to find a strategic partner, think about the types of things your company has in common with others. What other industries serve your target market? What businesses are located geographically nearby? How can what I do benefit another company, such as testing products or acting as a showroom of sorts for their goods and services?

How Can We Work Together in Strategic Partnerships?

At first glance, it may seem like How to Build Strategic Partnerships is very static, when in reality, they can be dynamic and constantly evolving relationships. Sharing trade show booth space is one of the more popular ways to work together, but you can also refer business to each other’s websites, share marketing efforts, acting as a “preferred supplier,” or even simply operating as a brain trust to share information back and forth.

Before you enter into these types of partnerships, however, you’ll want to make sure you have your own house in order to present a strong case as to why you should work together. Make sure you have your presentation polished, your finances in order (encourage integration with Quickbooks to streamline financial matters), and your employees on board.

Strategic partnerships are one of the best ways to do offline marketing, but many businesses simply shrug it off under the belief that they need to look out for their own interests first. While that’s true, helping another company may be one of the best things you ever do for your own revenue, as working together can create exponential growth into areas you may have never considered before.These few steps are the key points in Importance of Strategic Alliances in Company’s Activity.

 

by: Mikkie Mills