What are Strategic Partnerships?
Strategic partnerships in business are a type of collaboration in which two organizations work together to increase the value of their mutual product. This is not done by merging the organizations together as one, but instead by creating a tighter bond between them than they could on their own.
The value might be increased because one company has a more global presence and another company has better manufacturing capabilities. There are many different ways that making strategic partnerships works, but they can help make an organization more efficient while increasing its chances of success
It is often said that 90% of success in business comes from connections – connections between colleagues, connections with clients, and connections with partners. If a company can relate well enough to the right parties and get their message across through clear communication, they are set for success. However, if they don’t have the proper relationships and have difficulty expressing themselves clearly or freely around their partners then all their work will come undone at the seams.
Benefits of Establishing Strategic partnerships
Establishing a relationship with another company can be extremely beneficial to you. They supply you with valuable services that you would otherwise need to spend money and other resources on in order to provide yourself, thus saving you both time an money. It’s also an excellent way to expand your horizon and perspective by learning more about other companies, their products and how they work. This can be extremely useful if you’re planning on expanding your company into new markets or introducing an entirely new product onto the market.
Downsides of Establishing Strategic Partnerships
However, establishing strategic partnerships are not without their weaknesses. Some disadvantages include lack of control. As with any relationship, you will have to trust the other party, and you’ll have to work together to make sure that your product’s quality is always at a high standard. The other disadvantage is that your product may fall behind as you can’t control everything about it. You may be forced to cut costs or even change an entire piece of functionality because another company has done so. For example, AOL’s dial-up web browser was the earliest browser in the 1990’s and it was incredibly slow, but AOL couldn’t do anything about it as they were only skilled at providing phone services.
Strategic partnerships are a great way to expand your horizons and expand your company into new markets. You will have to trust the other party many times, but these disadvantages have been overcome by many companies with their ties with other companies and organizations that they’ve established.
One thing to keep in mind is that you should make sure you’re legally protected from any potential breach of contract. One of the best ways to do that is by using contracts that are legally checked by professionals such as Fintalent’s Strategic Partnership Consultants as well as having a lawyer approve them.