Financially Responsible Marketing

Checklist For Considering a Strategic Partnership

Posted by on Jul 4, 2013

Two heads are better than one. This phrase especially applies to the business world. Nowadays, strategic partnerships are becoming a common strategy for businesses. A strategic partnership is the process of two or more entities coming together for the purpose of creating solutions to their mutual challenges while remaining independent.

Forming a strategic partnership can provide both small and large businesses many opportunities for growth and development. No organization can do everything on its own, so when two partners come together to form an alliance, each can contribute something that the other lacks, making it equally beneficial to both parties. Essentially, a well conceived strategic partnership creates a competitive advantage and could be the difference between ultimate success and failure in the marketplace.

Here are some of the many benefits to consider that entering into a successful strategic partnership could provide:

  • Expansion of your product or service offering
    • The opportunity to provide supplementary products or services to customers that you otherwise would not be able to provide can be one of the most attractive benefits of a partnership.
    • Identifying a strategic partner that can help expand your product offering can differentiate your product and thus provide increased value to customers giving you a competitive advantage.
  • Access to new customer base and markets
    • When considering a strategic partnership consider that it can provide the opportunity to access entirely new markets and customer bases that your business has not had the resources to reach beforehand.
    • Introducing a product into a new market can be complicated and costly. Choosing a strategic alliance can overcome a lot of problems and help reduce entry costs.
    • A strategic partnership is often a way to enter a market that is protected by national tariff and other barriers, or dominated by another company.
  • Increased Brand Awareness
    • One of the key elements of a business’ success is constant, growing brand awareness. Along with the opportunity to increase market size comes the additional opportunity of increasing awareness of the brand. Strategic partnerships can allow an organization to reach a broader audience without putting in all the time and capital.
    • To create a favorable brand image in the consumer’s mind is costly and time-consuming. For this reason, a business deciding to introduce its new product may need a strategic arrangement with another business that has a ready image in the market.
  • Access to additional resources (new ideas, solutions, technology and contacts)
    • If your business wants to produce something or acquire certain resources that it lacks in knowledge, technology and expertise you may want to consider forming a strategic partnership with another business that can provide you with these resources. Pulling together these resources will open you up to new ideas, solutions, technology and contacts.

While there are many potential benefits of a strategic partnership, it is important that you choose the right partner and take the right steps to ensure it will be a successful partnership. When forming a partnership your business can face many challenges if you do not choose wisely. Find the right match to ensure that you will accomplish more together than you would on your own.

Do extensive research beforehand to ensure that you are entering into a partnership with a business that you can trust and that has a positive reputation within its industry. It is also important to ensure that they uphold similar policies and values and that the partnership is mutually beneficial so that there is equal effort on both ends.

Choosing the wrong partner can be damaging if it is not able to contribute to the growth of your business.  Imaginis can help develop your strategic partnerships, build mutually beneficial joint sales and marketing campaigns, and maximize your ROI on all your marketing efforts.

Contact Melanie at 416-703-8883 x222 or melanie@imaginisbd.com to see what we can do to help you increase your revenues and marketplace opportunities.