Types of Strategic Partnership

We`ve divided outsourcing partnerships into two main categories: external outsourcing and supply chain partnerships (which are essentially a type of external outsourcing that has its own unique characteristics). Remember that all these types of strategic partnerships can be adapted, modified and merged according to your individual needs. However, there are important differences between the two. In an incentive marketing partnership, a customer is rewarded with products from a partner brand. On the other hand, the partner`s job in a referral agreement is to send the brand leads they would otherwise struggle to reach – for which they are often rewarded, but not necessarily in the same way. Sometimes it can happen that a company does not hide or distort itself accurately and intentionally, aspects that could have a significant impact on the partnership. Or a partner starts with a high level of enthusiasm but is unable to maintain that level of commitment throughout the partnership. For example, a startup may offer expertise that benefits a large company, while a large company may have the established reach and resources that a startup needs. More than ever, we have seen a number of successful strategic alliances, and the trend will continue to grow.

A strategic equity alliance is formed when one company acquires a certain share of the capital of the other company. If Company A acquires 40% of company B`s capital, a strategic equity alliance will be formed. That said, outsourcing partnerships aren`t always an easy deal to pay an outside company to get things done. There are other types of agreements that could be entered into. For example, if you own a web design business, you can agree to a partnership with a computer repair shop where you create their website in exchange for long-term discounted services. Financial partnerships can cover everything from accounting to action programs to performance plans. These can still be mutually beneficial. For example, some companies offer their employees benefits for holding accounts with banks with which they have entered into a strategic partnership. Other examples of supply chain partnerships come from the technology sector. Intel manufactures processors for many computer manufacturers. Toyota manufactures engines for Lotus sports cars.

Texas Instruments makes chips for anything you can imagine. These companies enter into strategic partnerships with other companies in the field of supply chain. Alliances and partnerships are an important part of the business strategies of large and small businesses. But while many partnerships start with big visions and aspirations, not all alliances turn out to be strategic. According to Accenture, 76% of executives surveyed agree that current business models will no longer be recognizable in the next 5 years. Ecosystems and strategic alliances will be the most important agent of change. An open (and arguably a little overused) example of product placement is Krispy Kreme`s partnership with the 2017 film Power Rangers. The film is littered with footage and mentions of Krispy Kremes, and the plot even includes a Krispy Kreme Shop as a filming location.

Ultimately, a strategic alliance isn`t just about you, it`s about getting the best for both parties involved. Most of the work involved in establishing a strategic partnership is working with the right partner. Take the time to choose a partner with the same values, vision and, most importantly, a commitment to getting the most out of the relationship. To help you get the big picture, we`ve divided things into 15 types of strategic partnerships, which are roughly divided into two main categories: It may get a little more complex, but you`ll always see that kind of stuff in a strategic partnership agreement. You want to explain everything in printed form so there are no questions about who will do what later. Many companies opt for quality control and audit clauses in their partnership agreements in order to maintain the integrity of the products or services resulting from the partnership, so you should take this into account when creating your own agreement. Here are some general steps to help you build a successful strategic alliance from the start: Strategic partners allow companies to tap into an almost unlimited market for ideas, resources, and knowledge that would be impossible to jump into on their own, while avoiding the pitfalls that lead to failed partnerships and untapped potential. Whether you`re a start-up or a growing company, there are plenty of reasons to consider entering into a strategic partnership agreement.

At the very least, a strategic partnership will add value to your product or service by expanding your offering. A strategic partnership can even be a proverbial « match made in heaven » if both parties involved reciprocate well enough. Ultimately, each of these types of strategic partnerships (including those in the partnership marketing category) will be more successful if you go beyond simply limiting the marketing department and treating it as a thriving ecosystem with its own unique lifecycles. In other words, the most successful strategic partnerships encompass all aspects of the business that the partnership affects, from financing to business development to operations. If you can cut costs yourself, a partnership is not necessary. If this is not the case, and you want to reduce costs without sacrificing quality – that for you. A supply chain partnership occurs when two or more companies from different parts of a supply chain work together so that a company can outsource the manufacture of a product. Strategic alliances have become a popular way to grow businesses. In Robert L. Wallace`s Strategic Partnerships, he describes three reasons why this type of partnership works so well: One of the most popular reasons to form strategic alliances is to access another market.

This is especially common when a new product, event or campaign is launched. A strategic alliance is a partnership between two companies to achieve common goals and growth while maintaining independence. These partnerships tend to be long-term in nature, with each company contributing its expertise and resources. « Supply chain partnerships run into problems because on the supplier side, measures of success focus on time, cost and quality, while your perspective is likely to focus on sales and revenue. A supply chain partnership only works if everyone involved can meet end customers` expectations in terms of quality and price while remaining individually profitable. Working together to create more effective partnerships in the above way would benefit both charities and businesses, as they can better measure the impact of their cooperation. The additional exposure that a strategic alliance brings provides both companies with a wider customer base that they might not have been able to reach on their own. Sales marketing can take place both online and offline, and both have their pros and cons. For the main brand, an offline partnership could make it easier to stand out from the crowd in a world that is increasingly moving online. However, online marketing usually makes it easy to track the performance of a sales marketing campaign.

Typically, two companies form a strategic partnership when each company has one or more business assets or expertise that helps the other by improving its business. It can also mean that one company helps the other company expand its market to other markets by helping it with some expertise. According to Cohen and Levinthal, considerable in-house expertise that complements their partner`s technology activities is a necessary prerequisite for successfully leveraging technological knowledge and capabilities beyond their borders. [Citation needed] Strategic partnerships can turn into outsourcing relationships where parties want to achieve long-term benefits and win-win innovation based on the desired outcomes jointly. Charitable partnerships are very difficult to quantify because the main motivation of companies is reputation. And of course, reputation is almost impossible to measure! The next step in finding a strategic partner is to write everything down and crystallize it in the form of an agreement. This is a strategic partnership agreement. It is issued to reject the future likelihood of disagreement between the parties.

A proposal is made and signed, so that later there is no doubt about who does what. Joint ventures are the most complex partnerships that two companies can enter into – both legally and in terms of the amount of investment each company must make (whether in money, resources or time). They are also hard to return! For this reason, we would say that it is the most difficult to do correctly, and is certainly associated with the greatest risk.. .