Strategic Alliance and Your Business

What is Strategic Alliance? An agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. This strategy provides more flexibility than a joint ventures because the involved parties do not need to merge any assets or funds in order to proceed. Benefits: – Your strategic alliance gives you instant endorsement and credibility – You gain access to the networks of your partners through their database of customers, members, or employees – You develop a referral partnership – You associate your business with another established brand – You decrease your overall marketing costs, while expanding your reach – You position yourself as the specialist (expert) in your niche through the endorsement of your strategic partner to their network – You learn from other businesses regarding what has been successful for them in the past Here is some great advice when it comes to alliances: – Create a solid business plan backed up by a detailed contract – Define metrics for assessing the value your alliance delivers – Seek common ground with your partners – Establish formal systems and structures Here are some principles that complement the conventional advice above: – Focus less on defining the business plan and more on how you’ll work together – Develop metrics pegged not only to alliance goals, but also to alliance progress – Instead of trying to eliminate differences, leverage them to create value – Go beyond formal governance structures to encourage collaborative behavior – Spend as much time on managing internal stakeholders as on managing the relationship with your partners
Source Credit:  https://en.wikipedia.org/wiki/Strategic_alliance Source Credit:  https://hbr.org/2007/11/simple-rules-for-making-alliances-work
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